Aug. 28 at 4:02 PM
$VIRC This thesis I had from from 2023 is largely intact - the business/stock went parabolic after this, and a moderation in school orders since has caused the stock to decline significantly. There is an implicit expectation that profit will decline significantly, however higher margins mean VIRC has barely seen profit decline. The removal of low cost imported competition is allowing the sustainability of a domestic champion, as designed. VIRC likely sees all-time high margins going forward - this past Q1 they posted an ATH gross margin, amazing given it is a seasonally difficult Q, and if that continues this year we may be looking EPS of well over
$2. A company posting massive EPS growth at cycle lows is rare - that company trading at a likely ~4x EPS is even rarer