Solitron Devices Inc

Solitron Devices (SODI) has shown significant growth since our successful activist campaign, with its share price increasing from $3.66 in July 2016 to $25.50 as of June 30, 2026, reflecting an annualized return of 21.6%. Our involvement has led to strategic changes, including new management, which we believe enhances the company's potential for continued growth. The company's strong fundamentals and the improvements made post-activism position it well for future performance.

I took some more money off the table when I sold more shares in Solitron Devices, the small manufacturer of electronic components for missiles, military aircraft, surgical instruments and other applications in aerospace, defense and medical devices. The company's long-awaited surge in production and earnings continues to accelerate and the company recently hired an investment banker to assist with a potential sale of the company. However, given the huge increase in the stock price since we bought it several years ago, this position had become too large in our portfolio, so it made sense to reduce it and re-allocate the freed up capital to the two above-mentioned European opportunities.

Solitron Devices has shown a positive trajectory with an increase in bid price from $25.00 to $25.50 per share during the second quarter. The company benefits from defense/aerospace exposure, particularly with increased production of HIMARS launchers and AMRAAM missiles, which has led to a growing backlog and positions it for increased revenue. Following an unsolicited acquisition proposal, Solitron is evaluating strategic alternatives and has retained an investment banker, indicating potential for future growth. The share price has risen to over $30 per share, reflecting market confidence in its prospects.

Solitron Devices reported a significant increase in earnings during Q1, and the manager believes this trend will continue in the coming quarters. The company is exploring acquisition interest and has entered into multi-year supply agreements with major U.S. defense contractors, which are expected to drive sales growth. The manager highlights that the demand for Solitron's components has surged due to geopolitical factors, and production capacity is now being expanded. This combination of factors suggests a strong profit surge ahead for Solitron, supported by high operating leverage and management's commitment to increasing profits.

Solitron Devices (otc: SODI) has seen a significant increase in its bid price for shares, rising from $18.69 to $25.00 during the first quarter. The fund manager, who is also the CEO and a board member of Solitron, believes that the company's increasing backlog, particularly in defense/aerospace with products like HIMARS launchers and AMRAAM missiles, positions it for increased revenue. Additionally, the potential growth in the defense sector, highlighted by the President's defense reconciliation proposal, further supports the positive outlook for Solitron.

Solitron Devices has started to see a material uptick in orders, particularly with a large order for HIMARS components from L3Harris, which is its second largest defense customer. The November 2025 bookings were its highest ever at $13.9 million, indicating strong demand. With a backlog of over $27 million, Solitron is well positioned to report improved revenue and earnings moving forward. The fund manager's insider position and ownership of 11.2% of Solitron's outstanding shares further reflects confidence in the company's potential.

Solitron Devices has shown a significant uptick in orders, particularly with bookings reaching $8.0 million in the November 2024 quarter, compared to sales of $3.4 million. This included a large order for HIMARS components from L3Harris, indicating strong demand from defense customers. In the following quarter, bookings further increased to $8.9 million, with over $5 million from RTX for AMRAAM components. The fund manager, who is also CEO and a board member, believes that the upcoming AMRAAM order will be awarded soon, suggesting continued growth potential for Solitron.

Solitron Devices (otc: SODI) has shown a significant increase in orders, particularly with a large two-year order for HIMARS components from L3Harris, and over $5 million from RTX for AMRAAM components. This uptick in bookings, with $8.0 million in Q3 2024 and $8.9 million in Q4 2024, indicates strong demand in the defense sector. The fund manager expects revenue to reflect this higher backlog in upcoming quarters, supported by domestic and foreign demand for HIMARS and AMRAAM. The share price has also increased from $14.28 to $15.75, reflecting positive market sentiment.

Solitron Devices (otc: SODI) has shown a significant increase in order bookings, particularly with a large two-year order for HIMARS components from L3Harris and substantial orders from RTX for AMRAAM components. The fund manager, who is also CEO and a board member, notes that while earnings have been soft due to timing of orders, there is a material uptick in orders expected to reflect in revenue soon. The military's demand for HIMARS and AMRAAM is strong, with plans for increased production, indicating a robust growth trajectory for Solitron.

Solitron Devices has shown significant growth potential, with the largest quarterly bookings in at least twenty years, reaching $8.0 million in the fiscal third quarter, compared to sales of $3.4 million. The fiscal fourth quarter saw even better performance, with bookings of $8.9 million versus $2.2 million the prior year. Total bookings for the fiscal year were $20.8 million, a substantial increase from $12.8 million the previous year. The backlog at Solitron was $18.1 million as of the end of the fiscal 2025 year, up from $11.2 million a year earlier, indicating strong demand and a positive outlook for future revenue.