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how do you figure that? you think that they shorted the stock at $45 + to cover down here with the secondary? i dont think that it would be possible to short three million shares more, that would mean that there are over 5 million shares short. I dont think that is the case.
I don't know what they are doing in all honesty but you can be sure that
a) the wire house whores and insiders will make their money and
b) the retail investor will get screwed.
In what time frame order or price path it takes is the question.
Building each machine is a daunting task, even for specialized aviation technology companies. Not surprisingly, the two manufacturers welcome any help they can get from other companies, said Julian Soshnick, vice president and general counsel of Analogic Corp. (ALOG) , a supplier to L-3 Communications (LLL) , the other FAA-certified EDS manufacturer. Analogic agreed to talk to Hytec about a subcontract for some of the assembly.
"This is a massive, highly complex machine with hundreds of thousands of parts," Soshnick said. "It is perhaps one of the most sophisticated pieces of equipment ever devised by engineers."
EDS machines are larger versions of medical CAT scan machines, which use computed axial tomography to generate three-dimensional images from flat X-ray pictures. With conveyor belts, each EDS is approximately the size of a minivan, weighs several tons and costs up to $500,000 to make, Soshnick estimated. But unlike minivans, each EDS has more than twice as many parts.
Assembly time is one full day, but as the process ramps up, production could increase to 10 machines a day, Soshnick said.
"We are prepared to set aside everything we are doing in this time of crisis to do what the government needs," he said.
Contracts with the Transportation Department won't be big moneymakers for the EDS manufacturers and their suppliers, the companies insisted. "We will not gouge the government," Soshnick said.
But first, the government must tell manufacturers exactly how many machines are needed. The current estimate is about 2,200, but the government has contracted 100, and only 200 machines are already in place. The TSA plans to enter into more contracts as they're needed, a spokesman said.
Larger airports will require multiple systems and likely will have to make accommodations just to get them in the door and keep the floors from buckling from the extra weight. The airports also may need to reconfigure their flow of passengers and bring in additional electrical power for the machines.
"It may have been a little na�ve of Congress to order so many machines to be put in the field in such a short period of time," said Soshnick.
There is a so-called out. The law provides for "alternative means" to inspect baggage "if explosive detection equipment at an airport is unavailable." Such alternatives include a bag-to-passenger match-up, search by hand or bomb-sniffing dog, or a combination of these methods -- all unwieldy.
The fact that there is a back-up plan of sorts points to the dichotomy of the law. Yes, lawmakers were aware of the complexity of manufacturing, installing and servicing these machines by Dec. 31, but yet they still wanted a blanket system in place to ensure 100 percent explosive detection in the name of aviation security.
Kline estimated his coalition of 17 businesses could add 50 percent to the capability efforts, especially in developing whole systems through subcontracts and by creating parts and maintaining the systems. Specialized businesses could support EDS testing, which takes two weeks of continuous testing to ensure they work under normal operating conditions.
In the meantime, companies wait for definitive orders from the TSA, after the agency receives money from Congress --- their cue to start production and negotiate subcontracts.
"We don't know how much the government wants," Soshnick said. "It's all quite secret. They don't want the bad guys to know."
Maybe, but on May 18, TSA has to update Congress on what's done and what it will do to check all screened bags with automated equipment, including installation and operational dates and schedules, and submit legislative recommendations. The agency will replace contract security screeners with federally hired and trained employees on a graduated basis until Nov. 19, when an expected 30,000 screeners will be deployed to screen passenge
Scramble to build baggage-screening gear
WASHINGTON (CBS.MW) -- Four months after Congress mandated that systems to detect explosives be in place at U.S. airports by Dec. 31, the Transportation Department has ordered production of only a fraction of the complex systems, and critics say Congress hasn't appropriated enough money to complete the security overhaul.
The newly created Transportation Security Administration, responsible for improving airport security, is expected to name by April a single private company as the government's general contractor to coordinate the comprehensive efforts at airports nationwide. Aviation technology industry bigwigs Boeing (BA) , Lockheed Martin (LMT) , TRW (TRW) , Northrop Grumman (NOC) and General Dynamics (GD) are considered possible choices.
"We know by word of mouth that these various companies are preparing their approaches and soon -- maybe in less than a week - will turn in their answers to the TSA," said Robert Kline, vice president of Hytec Corp. of Los Alamos, N.M., which makes scanning systems that can detect explosives.
Hytec, whose customers include NASA and the Defense, Energy and Commerce departments, has been involved in discussions with officials of government agencies and the Bush administration since Transportation Secretary Norman Mineta encouraged private companies to use their resources to help reform aviation security. Hytec has organized a coalition of mostly small businesses to work with the two manufacturers of the explosives detection systems -- known as EDS -- that have been certified by the Federal Aviation Administration.
A long road ahead
Mineta last week expressed doubt that the estimated 2,200 systems needed to cover all U.S. airports could be in place by December, but a TSA spokesman said the agency "fully expects to meet the deadline imposed by Congress." He added that the agency is "talking to a number of companies that could fit into the mix," but "we're not at liberty to say who we've been talking to."
Kline's coalition, the 4-month-old Aviation Security Manufacturing Coalition, has called on Congress to extend the EDS installation deadline to June 2003 and appropriate money as soon as possible so companies can begin devoting their resources to the effort. Last year, Congress approved $108.5 million to purchase and install the systems. But Sen. Jeff Bingaman, D-N.M., sent President Bush a letter last week seeking $5 billion more for airport security in the supplemental budget Bush is expected to send to Congress in a few weeks.
Last week, the government ordered 100 EDS machines and 300 system parts kits from InVision Technologies (INVN) , one of the two FAA-certified EDS manufacturers. But even the company's own news release touting the contract expressed doubts about InVision's ability to deliver the systems because of the "risks and uncertainties ... including the risk that the TSA may seek to fulfill its needs for explosives detection systems from InVision's competitors, or that additional funding will not become available.
"There can be no assurance that these units will be delivered as anticipated, that funding will become available for additional orders, or that future orders will be forthcoming," the company added.
Secondaries are just a means of insiders off loading their shares junk to the general public (gullable investors, like this board).
The insiders gets there money and the investors gets to hold the bag. Not to mention major dilution of the value.
Always made money shorting INVN...