As I have repeatedly said. News moves CDTI. This Joint Venture with Perelli is most welcome PR and timing is not done to paint lipstick on earnings since they are more than 3 weeks away. Legitimate attempt to expand their business interest which in my opinion can only be good especially considering they are joining up with a proven player .
Near 900,000 shares traded---terrific-----I hope that a signifant portion of that volume is Marxe and Greenhouse who for the longest time have been a huge safty net for the short players in this stock. CDTI is never going to run away [ regardless of any news] until They are finished with their position. SPAN----I beg to difer with you in your assumption that they have made money on their ownership of CDTI stock. I believe their investment is in $3.23 area---I doubt they sold more than 200000 during some of those rallies in 2011 . Selling the majority of their stock down here will definiey be a loss as was the sizeable liquidation in the Marxe Greenhouse position at year end when they tried to get this albatross off their books.
Loved the PR---disappointed though not more follow through during the day---nine cents up is weak
Woodie - The market has failed to appreciate the great significance of this JV full marks to Breese for putting this together. Pirelli is a leading multination with a market capitalisation of over $8 billion and annual net profit of about $500 million. It is obvious that they would not enter a JV with a small company unless they were entirely satisfied that gaining access to CDTI's proprietary technologies is to their significant advantage. Pirelli already have a strong foothold in the European LEZ market and with OEMs in europe, Russia and North America and have a large and strong sales organisation. The recent verifications by the EPA and CARB of Purifilter(R) EGR as well as the breakthrough base metal catalytic converter for gasoline engines are potential world beaters and we now have the sales clout to make them so.
The market has also failed to appreciate the with the removal of Cleaire, the principal competitor in the California heavy duty diesel market and the new determination of CARB to enforce the Truck and Bus Regulation and other anti-pollution initiatives sales are now experiencing a huge surge.
Breese will certainly have important news to give at the next conference call in three weeks time.
David that might be what pirelli as a group make but the pirelli ambiente group is a catastrophic loss maker from day one that bresse and co have been sucker punched into a jv with why in the name of all that is sane would you want a Romanian factory that makes Silicon carbide DPFs iam not seeing the logic here, at what time did the management signal they were going into commodity products
DAVID: I agree with all you post---however, one caveat ----Sure their major competitor in California floded but the question remains " Are they selling their product to an industry that appears to be rebelling against these regulations"? Hopefully the earnings and future guidence at the CC will give us an idea of the answer to that question.