Sono-Tek Corporation: Backlog Additions To Support Year-Out Sales

Valkyrie Trading Society Investing Group Leader Follow Summary Sono-Tek is seeing strong growth in medical applications, and a solid sales outlook of modest growth or flat sales for the rest of the FY. Customer concentration remains high at SOTK, with 52% of sales from two customers. In general, products need to get validated for momentum to continue. On the other hand, the success in higher ASP sales and in the sorts of things sold in the medical vertical could lend itself to follow-on sales. Backlog build has occurred, and we should see about a year of buffer thanks to post-quarter close backlog additions. While there are other appealing potential markets for SOTK coating systems, it's a small company, and a growth trajectory isn't assured from its idiosyncratic sales base. Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » mr.suphachai praserdumrongchai/iStock via Getty Images Sono-Tek Corporation ( SOTK ) produces systems for spraying things thinly, with minimal overspray, in various industrial applications with one of the big ones being in the spray of medications on stents. As an industrial equipment producer, the issues This article was written by Valkyrie Trading Society 5.63K Followers Follow The Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions. Analyst’s Disclosure: I/we have a beneficial long position in the shares of MATW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.