Back to the factory topic, Eric make an oblique reference during my Tier question to building stuff for Tier as well in that space. We should hope the Variable Torque Motors (VTM) stuff distributed by Cummins Crosspoint (as referenced in a separate topic) takes off and we have a steady specialized inverter business as we wait for the demos to be accepted/proved and the big contacts to come.
This is my first post. Let me start by saying I own ZBB and have for quite some time. I bacame interested when I noted insider buying to provide working capital. Vary rare that one see's this. Obviously suggests confidence.
Are we going to make money with ZBB. Don't have a clue, I gotten the beads out and will light the candles. At this stage of the game that's about all you can do.
And now to the reason for this post. Are you guys serious. The plant "looks clean" which of course suggests.....Or, how many parking spaces......Even better, lets' get an aerial view......By the way, the best was watching some of you fall over each other chasing ZBB up to .89 as though there's no tomorrow.
As a 70+ year old speculator who's been at this game longer than most of you have been alive I'm going to give you guys (and ladies) some free advise (remember if it's free it MAY not be worth much, or maybe it could be)Your goal is to build a position with as little capital at risk as possible----how is that you say----well, NEVER chase a start up, What you really want is a big seller who (maybe he needs a tax write off, cash for the X wife, or what ever) anyway, pray for a seller who drives the price down. YES, at this point you want the price to GO DOWN.....REMEMBER, YOU WANT TO BUILD A POSITION AT THE LOWEST PRICE POSSIBLE......Well guess what, we've got a seller, Lets hope he continues and we have a chance to add to our positions below .50. NOW, that would REALLY BE NEWS TO GET EXCITED ABOUT... Good Luck to all.
Makes me wonder if I will be an old fert too. You look at a plant for an indication of their ability to do what they say they want to do and determine maintenance as an indication of their ability to fund maintenance.
Your advice after all these years amounts to buy the dip. Hard to figure out where the dip is and when an opportunity might be missed by hoping for more of a dip. Might also depend on ones view of the future?
Geeze you are an optimist though. If I were in my 70s I don't think I would believe I would live long enough to see this through and would not bother. Then again maybe I'll be sitting in an old age home with a computer and nothing to do other than to say how long I have lived and how smart I am.
Getting old stinks.
And with your first post you show very little. I would definitely say it is not good for the stock to go down below .50 so 'some folks can buy cheap'. If that were the case you could have bought in the .20s last May...it could put a real crimp on raising cash or really hammer the dilution should the need arise. Thanks for the advise...err, I mean advice.
Signed ~~ mooselope ~~ the sarcastic idiot as I'm sure you'll view me after my post...lol
With that being said, which is why I'm invested here. The possibilities this company currently has make it worth well above a 24 million market cap, NO? I've seen companies with 0 revenue and no revenue in the forseaable future trading at 200 million just on hype and speculation.
i remember a few years ago GM sent representatives to educate state govt's that the EV was coming and they were going to have to prepare for a 30% increase or something like that in electricity demand but EV introduction has been slower than predicted. just saying lots of moving pieces to the EV charging market.
geez moose, you thunk that up all by yourself? i'm just saying i'll get a little more excited about it when i see some numbers as to the economics, etc. someone has to pay for the batteries, the article i just posted talks about a subscription service. smart meters were supposed to take off like hotcakes and they haven't.
i guess i'm just a little more cautious than you are. as eric stated, declining solar costs will be a big factor, right now excess solar sold back to the utility doesn't have a very good return if any, if i had a fleet of ev vehicles a solar/battery/charging combo might look very good, assuming i could put in enough solar. as far as apartments/homes, etc, wouldn't they just charge up at night when rates are already low?
we can discuss to death, sounds like they have a lot of potential, ok? but nothing is certain until the fat lady sings.
Was Tier a topic of discussion at all?
Did Jeff Reichard speak at all?
What about Tier's facilities ... anyone get a look?
I had hopes that Tier would be producing some (steady?) revenues for the company, but I don't remember it being mentioned much lately on this board or in company PR releases.
How long should we wait till we decide whether this was a good use of company funds?
From the quarterly report:
$266,107 increase in commercial product sales and revenues
The increase in commercial product sales and revenues consisted of sales attributable to our Tier Electronics Power Conversion Systems business, which we acquired in January 2011
Cost product sales: 156,671
Increase in selling, general, and administrative expenses of $599,268 due primarily to the inclusion of $280,000 related to Tier Electronics in the 2011 period
Not sure how to interpret that last item ...
Jeff Reichard was not at the meeting. It was said he had a prior engagement. I have never been in Tier's facility. It is a small clean building a couple blocks away within the same industrial park. Drove by it last summer. Suspect the Tier input is the software that allows ZBB to make a product managing power. If you read page 19 of the 2011 Annual Report it breaks out the $772,929 of revenue from Tier that they acquired in January 2011.
Soc posted a link to the Annual Report last week.
Shame he was not there. I would have liked to get a look at him.
wing they have parking behind the building, in front and on one side. I do not see available parking as a constraint. One might expect that if they get it rolling and need additional capacity they might be able to run additional shifts. It just did not look like a labor intensive operation as far as number of people necessary to produce. Even more so when one considers that the plastic is molded elsewhere and the circuit boards probably assembled at TIER.
The addition of 3000 amps has me interested. Does it take a lot of power to test large groups of finished product or are they thinking of forming the cabinets in house? Scott mentioned they were getting the area (high bay area) ready for manufacturing and it was clean and sparkling for a 20 year old(or so) plant. I think the power was being added to the high bay area meaning that they are likely looking to mfg there. Also a mezzanine was installed in part of the area. High value product doesn't take a lot of product to have a significant finished goods inventory. Many of the components (metal case, plastic tanks for liquids) are bulky and light.
Room also in the offices for additional staff. Looks like a plant put in place with an eye towards future needs. Sure hope they eventually need the space.
Good morning early bird. There was little being assembled or in view. The low ceilinged area of the plants being used for a test of a couple products and for manufacturing of what they call stacks.
The high ceiling area was mostly vacant except for storage of a few cabinets and what I think are he containers for their solution. they mentioned they are bring in 3000 amps to the high ceiling space which implies they expect to begin manufacturing.
If you are trying to gain a feel for finished goods inventory I saw none. If you are trying to get a feel for work in progress it was not obvious. If you are trying to get a feel for the time it takes to build the product for an order I think I recall Scott replying 3 weeks to a person who asked on the tour.
At this time the question becomes would you be more concerned by seeing substantial finished goods inventory or no finished goods inventory?
The product looks like a bunch of circuit boards, maybe produced at Tier, placed in a cabinet probably assembled elsewhere, with plastic containers (made elsewhere) holding liquids. Much of the product is software which is hard to touch on a plant tour.
If you are trying to touch a inventory for comfort there is no comfort from my viewing of the plant. On the other hand why would they have built finished goods inventory when they parts are easy to obtain, fast to assemble and use working capital? Physically it is just a tall cabinet with circuit boards and plastic tanks of liquids and a electrical buss and proprietary software.
Offices appeared to have enough space for considerable hiring.
Feelin like you should have stayed in bed?
Stay in bed. Nah enjoying what mornings I have to get out for a run before I need to start wearing the thermo gear.
The product? I believe you might be referring to one of the modules on the tour. To your point physically it might not be impressive, although it is quite sophisticated.
And what is with everyone and the parking lots?
To follow up on Jeff's, it would be difficult to have a bunch of product being built in place when the V3 wasn't done yet...what would they be building? They were building some V2s as back up b/c it will be obsolete when the V3 rolls out. They also said they were commencing building their first V3 there starting 2 days ago on Friday.
Parking lot was sufficient for now, but certainly not terribly large. Street parking is available should the ramp be super fast. I heard someone say turn around on some product was 20 to 30 weeks and that should be cut in half shortly as manufacturing gets going and then they are gonna cut it in half again. They do test each product prior to shipping.
For anyone that didn't catch the efficiency item I posted at the beginning. It will be over 70% and they can definitely get it over 80%.