Why Solitron Devices (SODI) Stock is a Compelling Investment Case

Cedar Creek Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.4% in the third quarter of 2020, underperforming its benchmark, the S&P 500 which returned 9.0% in the same period. You should check out Cedar Creek Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Cedar Creek Partners highlighted a few stocks and Solitron Devices Inc (NYSE:SODI) is one of them. Solitron Devices Inc (NYSE:SODI) is a semiconductor company. Year-to-date, Solitron Devices Inc (NYSE:SODI) stock gained 7.6% and on October 20th it had a closing price of $2.85. Here is what Cedar Creek Partners said:

“Solitron Devices (SODI), where I am the CEO, rose 16% in the quarter from $2.46 per share to $2.86. On September 24 Solitron issued a press release noting preliminary first and second quarter results for fiscal 2021. For the fiscal 2021 first quarter, three-month period ended May 31, 2020, net sales were approximately $2.7 million versus $2.6 million in the fiscal 2020 first quarter. Earnings in the fiscal 2021 first quarter were projected to be approximately $0.2 million to $0.3 million. For the fiscal 2021 second quarter, threemonth period ended August 31, 2020, net sales were approximately $3.1 million versus $2.4 million in the fiscal 2020 second quarter. Earnings in the fiscal 2021 second quarter were projected to be between $0.4 million and $0.6 million. While first half bookings were down from the year earlier period, Solitron increased fiscal 2021 bookings expectations from $10.0 million to $11.5 million. Net sales expectations for the year was kept at $10.5 million.”

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Our calculations showed that Solitron Devices Inc (NYSE:SODI) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.