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CPI Aerostructures Inc. Message Board

  • cpa38 cpa38 Feb 7, 2013 9:52 AM Flag

    Lots of complaining here ....

    Yet, the only ones to blame are yourselves. The CEO is all hat, no cattle. He constantly talks a big game, and fails to deliver. Accounting tricks keep the earnings up, then boom ... write-down. That's the story here. And the only way to gauge when/if this company is ever going to be worthy of investment ... watch the cash flow. Big profits, no cash flow, that's the Enron story. And that's the CVU story too.

    You can't own this stock without getting hurt. Sell. Don't come back until a complete change in mgt and cleaning up of the accounting.

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    • benson_bridges_baydreams benson_bridges_baydreams Feb 7, 2013 12:22 PM Flag

      Well put!
      The CEO and POC accounting has this gamed perfectly for himself. As the older long term contracts progress, the amounts billable will diminish since most is counted as income up front and early on. So they may ship the same amount of sets for the A10 or E2D next year or the year after but the revenue and naturally net profits will diminish. By then what has the CEO have to lose. Another two years at $650k plus annually base, sale of remaining shares on top of the $2.4 million he received for dumping his shares last June. So this company will flounder further under his lack of leadership and destroy shareholder value while when the company approaches worthlessness the No Oversight Board of Directors (shame on them) finally do what should be done immediately and remove the CEO from his position. For the CEO big deal. He bagged another couple of million and can sail off into retirement and the shareholders and the employees are destroyed. Every day the Board allows this management team to stay and extract an undeserved paycheck is another day of injustice. This CEO has been talking about growing the commercial business. And how have they fared. Not good. Finally he feels the heat and fires the VP of New Business Development. How about some accountability on the CEO's end for watching the lack of commercial business development and not doing anything all these years. Also under the double speaking CEO the company's name has been tarnished, branded as a non deliverer and a company in constant disarray and in crisis mode. Shame on the Board of Directors for allowing this to continue for so long. Great move too guys to run across the street into larger fancier headquarters with nice expensive furniture.

      Sentiment: Strong Sell

      • 2 Replies to benson_bridges_baydreams
      • I won't comment on your characterization of the CEO, but I do think there are distortions created by using POC accounting that will come back to hurt the company. I disagree with your comment about them not doing a good job getting commercial business, though. A few years ago they were 95% or more military; this past year they will be about 60% military according to the Cowan presentation yesterday. I have spent over 45 years in the aerospace business in both large and small companies, and to get the number of new commercial customers they have gotten in the last two years is unheard of, especially with long term contracts worth tens of millions of dollars each. Most of the new contracts you get with a brand new customer are small, as the customer looks to test your ability to deliver and check your quality. CPI got a number of very large contract for their first ones from some big customers, this is very rare.

        In fact, the large amount of new business is indirectly the cause of some of their problems. It takes a lot of effort to build these complex structures for the first time, with all of the new work the just received I am sure the system is straining. They have added a lot of people this past year but still are experiencing growing pains, which is to be expected. It looks like they have the talent to make things work out alright, it is just going to take time. They may be better off taking less work, not more work, at this time to get through what they have on their plate and instead look for contracts that don't have a start date for a year or so.

        I don't think the CEO fired the VP of business development, I understand through others in the company he left on his own account. Whoever was responsible for getting all of that work, especially new customers, including 4 commercial ones, deserves a medal, not the boot.

      • benson_bridges_baydreams benson_bridges_baydreams Feb 7, 2013 12:27 PM Flag

        Oh and as the other poster put it. Shareholders blame yourselfs. Blame yourself for holding onto a money losing proposition. If you hold further you deserve what you get. Talk of 787 contracts imminent. Give me a break. The CEO just told you this year will be worse than last. Does that tell you anything about any possibility of getting a massive contract. Hey shareholders I have a bridge to sell you. LOL

        Sentiment: Strong Sell

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