OT. I've held KVHI continuously for the last 39 months, and I have steadily increased my position too, so I definitely can tell you that buy and hold is not dead - if you find the right stocks. It's definitely a stock pickers market right now. KVHI is one of the very few stocks that I feel comfortable with holding for the next several years, and sleeping well while I do it.
Here is it's performance over the last 40 months
siliconinvestor.com
The best part, is the real growth is still ahead over the NEXT 40 months and beyond, which should easily eclipse the last 40.
Briefly, without intruding here too much, let me tell you about some of the exciting things just about to unfold, all within roughly the next year.
1) KVH is about to end the automotive market in June with the ONLY in-motion, live satellite TV/Internet antenna for cars on the market. Because GEO TV satellites are so far away (22,300 miles up), their signals are much weaker than LEOs (low earth orbit) satellites, so satellite TV antennas till now have been huge monstrosities, until KVH figured out a major technological breakthrough to dramatically reduce the height of the antenna and also streamline it.
The after market for vehicles equipped with rear seat entertainment systems is already over 1 million units. At introduction in June, the system will just be for TV, but 2-way in-motion broadband Internet will follow shortly (it has already been in use over a year in RVs and boats). In addition, this technology is perfect for Homeland Security and the military (an older version is in use in Iraq). You can read about this technology here (click separately on each topic).
kvh.com
2) KVH is the EXCLUSIVE supplier of tactical navigation (GPS integrated digital compass) equipment to the U.S. military and many NATO countries. It is currently in use on hundreds of vehicles in IRAQ, including all Bradleys, M1A1 tanks and Special Forces Humvees. The war, with the early sandstorm, and the recent POW issue where a convoy of support trucks without TACNAV took a wrong turn and Americans were captured and killed, has highlighted the need for tactical navigation and situational awareness on all military vehicles. This $4.5 billion market has only been 2% penetrated so far, and the military is set to make production decisions affecting over 53,000 vehicles later this year. The ASP of TACNAV is $10,000.
kvh.com
3) Over the last year, KVH has jointly developed with L-3 communications a miniaturized IMU (Inertial Measurement Unit) and guidance system for smart munitions, including precision guided bombs like JDAM, rockets like MLRS, artillery shell such as ERGM, and new generations of missiles being developed for helicopters and planes to replace missiles currently in use. The final prototype was delivered to L-3 earlier this year.
The current supplier for JDAM, Boeing/Honeywell is already running 24/7/365 just to meet the requirements for the larger JDAM bombs. The Honeywell IMU is a decade old mechanical design. The KVH product is optical, and is more accurate, smaller, lighter, and also cheaper.
Major design-in decisions for several programs that require a smaller, lighter tactical grade guidance system, will be made in the next few months, including the MK-82 500lb JDAM, and the Army's common missile program. There are no other competing technologies ready to go at the size/price/performance required for these programs, and the Boeing/Honeywell system is already maxed out in production. Any wins could have a major impact on KVH for many years to come.
4) KVH has also been in joint development for several years with ABB, one of the worlds largest suppliers of electrical generation equipment, for a revolutionary high voltage current sensor, that replaces refrigerator sized, mechanical, oil filled, electrical power transformers, with an optical device the size of a hockey puck. The new device will be digital, multiple orders of magnitude lighter, smaller, faster and cheaper. The component has already been tested in customer power grids for several years. KVH delivered the final prototype to ABB last year, and we are awaiting ABB's switch over to the new technology. As in all of the above, the KVH product has no comparable competitor, and KVH will be ABB's exclusive supplier.
kvh.com
I haven't even mentioned their current markets. They are the dominant supplier of satellite communications equipment to the RV and marine markets. All of their key, proprietary fiber optic technology is patent protected too, with over 80 patents outstanding. If you should care to do some DD on this marvelous little company, try the KVH company overview page,
kvh.com
Also, here is a consolidated link to over 6 years of information.
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