MicroMarvel: Optex Systems - Undiscovered Optics

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MicroMarvel is a series of articles highlighting undercovered stock with less than a billion dollars Market Capitalization. These articles are not intended to be buy recommendations. They highlight stocks that may have limited trading volume and may be highly volatile so if you do decide to add them to your portfolio I highly recommend you use stop losses and limit orders.

Today's MicroMarvel is the aerospace & defense company Optex Systems(OPXS). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11 /15 the stock gained 63.86%.

OPXS

OPXS Price vs Daily Moving Averages (Barchart)

Optex Systems Holdings, Inc manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States. It offers periscopes, such as laser and non-laser protected plastic and glass periscopes, electronic M17 day/thermal periscopes, and vision blocks; sighting systems, including back up sights, digital day and night sighting systems, M36 thermal periscope, unity mirrors, optical weapon system support and maintenance, commander weapon station sights, and sight assembly refurbishments; howitzers comprising M137 telescope, M187 mount, M119 aiming device, XM10 and aiming circles; and applied optics center consisting of laser interference filter, optical assemblies, laser filter units, day windows, and specialty thin film coatings, as well as other products, such as muzzle reference systems, binoculars, collimators, optical lenses and elements, and windows. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. The company offers its products directly to the federal government, prime contractors, and foreign governments. Optex Systems Holdings, Inc was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc is a subsidiary of Sileas Corporation. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. 

 

Barchart Technical Indicators:

  • 100% technical buy signals
  • 110.90+ Weighted Alpha
  • 130.51% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 13 new highs and up 54.55% in the last month
  • Relative Strength Index 89.75%
  • Technical support level at $6.48
  • Recently traded at $6.80 with 50 day moving average of $4.46

 

Fundamental Factors:

  • Market Cap $44 million
  • P/E 19.00
  • Since this stock is not covered by Wall Street there are no Revenue and Earnings projections

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • CFRA's MarketScope gives the stock a hold rating

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Disclaimer: On the date of publication, Jim Van Meerten did not have (either directly or ...

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