Short term -- restructure: completed major headcount reduction, sell microelectronics busienss to focus on UC. ESM: Kenworth now offers as factory option on premium models, another oem about to announce the same, thrid is testing.
Mid term -- resturctue: factory consolidation, return to profitability.
China buses are expected to decline while grid, auto and light rail should grow. 2018 "inflection year".
Long term -- excess rail braking energy recapture.
Compared to last call, they seemed to downplay ESM and focus more on grid and rail. .
Sale of microelectronics unit and cost cuts will give them cash, and reduce the risk of dilution.
Should go back into the 6.50 - 7.50 range until more news.
In retrospect, the credit line issue was a huge signal that the stock would get diluted. Today, the company announced that since April 23rd they raised $10M by selling 1.83M shares.. There were 29.95M shares before the dilution, so that's a dilution of 6%.
6.60 is the new 7.
7.54 is the new 8.
8.49 is the new 9
9.43 is the new 10
10.38 is the new 11