A company which has managed to come out winners of the last couple of day’s worth of up and down trading is Servotronics (SVT). On May 14 it achieved a rise of almost 20%, closing at a very respectable $10.04. Working out of New York, Servotronics designed and manufactures cutting edge technology.
Within the company there are two distinct sections; the ATG focuses on providing applications for the government, working with aircraft and missile technology. The other arm of the company is the CPG part, which produced all types of bladed equipment from bayonets to cutlery.
The results which they gave out for the first 3 months of the financial year showed a net income of $622,000 and a figure for revenue of almost $8 million. This represents a big increase of almost $500,000 in the income reported last year, despite the revenue only increasing by some $340,000. A successful cost reduction drive is touted as the main reason behind these positive figures.
The stock price over the last year has varied greatly, from $5,50 to well over $11, so it is a very mobile price and the reliance upon government contracts in a very unpredictable field makes it difficult to predict how this will one will go in the future.