Sono-Tek Insiders Buy Shares Under the Radar
Sono-Tek Corporation [[SOTK.OB]] may not be the most exciting OTC stock, but insiders are quietly building a stake in the company. Two directors purchased over 20,000 shares in recent months, as the company prepares to report its fiscal year end results. So, is this insider buying a sign of good things to come down the road for shareholders?
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Director and President Joseph Riemer purchased 2,200 shares of stock at $0.45 each on May 20th. After purchasing more than 10,000 shares since February, Mr. Riemer now owns 41,255 shares of Sono-Tek Corporation in total. Meanwhile, Director Philip Strasburg purchased 5,000 shares at $0.50 each on May 19th, and now owns 30,000 shares in total.
The purchasing comes ahead of Sono-Tek’s fiscal year results, which are expected to be released sometime in May. Preliminary results indicate that the company grew sales by 12% over the prior year to approximately $6.4 million. Meanwhile, the company expects to report a loss of about $1.5 million when their annual audit is complete, with approximately half non-cash.
In response to the current economic climate, the company will take on a different approach going forward. Sono-Tek will focus on maintaining cash reserves and cost controls in order to bring it back to profitability, while taking advantage of newer products serving the clean energy markets for fuel cell and solar energy development and manufacturing.
In the end, Sono-Tek is remains unprofitable despite its revenue growth. As a result, investors may want to wait for a clearer picture before taking a stake, while speculators may want to follow management’s lead as future news announcements could send shares higher.
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