DJ, here's the plan. Make the company profitable NOW. Tell the financial guys inside and outside of the company to take a hike. Announce a share repurchase program, even if insatiably its modest, it will show a lot more commitment. As cash flow improves, do a debt financing and announce a long term share repurchase to reduce the share count by 30-50 percent. That's how it's done. Focus on cash flow/profitability and not financial hocuspocus.
I used to think that "A confederacy of dunces" was the funniest book ever written. It was hilarious and sad at the same time. However today I was thinking about RIBTs prospectus from a while back with its great revenue and income forecast. As novels (I.e. Fiction) go, I have decided that the prospectus seriously warrants consideration for funniest book of all time. If this company had any cash, it, and the management (and possibly Maxim) would all be the subject of some big time lawsuits. I wonder if Shorts middle name is Ignatius?
With almost 100 million shares outstanding a one time cash payment is worth 10 cents a share. Why would you put a multiple on a non recurring event?
Updown, this was a great article by a guy who is unbiased and knows how to analyze a company. Wonder why your note got three thumbs down? Think there might be a few guys out there trying to acquire shares at lower prices? Luckily for me, I've owned my 2.2 million shares for a long time. I might be the largest shareholder after Bob!
The large backlog is a blessing and a curse. Sure it is a measure of security, but at the same time it implies the need for a lot of working capital. Additionally, long lead times may cause some customers who need the product ASAP to look elsewhere. Anyone know how long it takes to fill the average order?
The current management needs to be separated from the business immediately, unless they produce a clear plan going forward which does NOT include further dilution. If a JV is the only recourse than get your rear in gear. Shareholders have been patient beyond the pale, but that may come to an end sooner than you think. DJ, time to be forthright and bold. The time for protecting a paycheck has passed.
In the beginning, using independent distributors may be the appropriate business model. But now, with proven e.products and 8000 units in the field, this model may no longer be right for all areas. At the very least, distributors should be getting a smaller piece of the pie as the turbine becomes more readily accepted in the marketplace
DJ owes shareholders a complete explanation of how and why these losses were allowed to get to such a level. How do we know the distributor is not playing both sides against the middle? Regardless, who in capstone is responsible for shush an irresponsible act. What percent of the loss came after the energy slide and Russia's involvement in Ukraine? We need full disclosure and accountability now.
I hold 220k shares at Schwab. Today they asked to borrow the shares and pay a very high interest rate for if I agree. Obviously the intent is to loan the shares to shorts at probably two to three times the rate they proposed to me. This tells me the shorts are alive and well. For what it's worth, I did not lend the shares.
The board needs to hire a company like McKinsey to review all of CPST processes and competencies, and while they're at it to review the Wrightspeed deal and the Russian losses.
With the exception of Tony Lorentz who is responsible for product development, there are no engineers in management or on the board. The head of operations has a degree in economics! What? So here we have a state of the art engineering company being managed bt sales and financial types. There is no engineering voice. I also have a very strong feeling that the company lacks people with strong operations management and negotiations skills. Given all of its supplier and distributor deals, they need a world class full time negotiator. I believe in the product. That's not the problem. Management needs to wake up to its lack of effectiveness.