I am a long time follower of COBR, having at times invested substantially. I have not invested in the stock for over 2 years having concluded that management was grossly ineffective. Every quarter is the same "we will be profitable...". It is the same old BS and the company continues to lose ground. Book value has steadily dropped and the debt has not been reduced.
Five years ago the company was in much better shape and had no debt. Bazet decided to go heavily into mobile GPS- the beginning of the end for profitability.
So long as present management is in place I regret to conclude that COBR is doomed to continued failure. It was a good niche company selling moderately priced consumer electronics with a loyal clientele and steady profits. Now, it is a losing proposition with a very questionable future.
Similarly, you probably do very poorly with your investments..My guess and you're probably not one to admit that as most negative nellies are... Furthermore, it's obvious you do not follow the company very closely ... They have done what they have said the last 2 quarters, in tenuous times. I believe management is, on the contrary,effective.
We, most in the know here, agree Bazet was misguided going with the gps, but the PPL seems to being working , finally. The 'content' derived revenue opportunity for speed/red light cameras seems undeniable. Brand recognition looms positively, large here. Throw in a potential massive trucker shortage here and things could get very interesting despit 10% unemployment.
Five years ago 95% of companies were in better shape so I don't see your point.
They clientele imho is just as loyal today as 2 years ago and 5 years ago.
Cut me a break. Are you related to Bazet? That could be the only explanation for trying to justfy his efforts which has resulted in the company's bleak situation.
In just two years the company's book value has been cut in half. Two years ago the company had over $6m in the Bank and in the last quarter it reflected less then $ 1m. Look at the debt- from next to nothing to over $13m. The balance sheet has been decimated.
The acquisition of PPL has been a disaster- they paid much to much for a marginal company. Growth has been improving recently but so what? It has not been the spark that it was hoped for. When they bought the company in 10/06 they paid around $21m for a company with only $15m in annual revenues and income of less then $2m. Look at the last 4 years and ask yourself what happened to PPL?
Bazet and his crew have not bought stock in any consequential amount. If they thought it was such a bargain then why are they not buying?
I have been a successful long term investor. Even at these depressed (historical) levels, COBR is no bargain.