- Sypris is a manufacturer of vehicle parts, oil & gas closures and military electronics. The company is specialized in landing long-term, sole-producer contracts with long sale times.
- Sypris' stock price climbed rapidly after bullish management guidance and the landing of new defense contracts.
- However, at current prices, all future rewards are already discounted.
- No margin of safety is left to allocate the important risks inherent in Sypris' business model.
- Therefore, we believe Sypris' stock currently does not classify as conservative safe investment, but rather as very speculative.
For further details see:
Sypris: An Interesting Company Trading At Speculative Prices