Gooch...some of my thoughts I posted over on RB, for those that don't read there....Gordon
Mexcom / all, back to TVI. I spoke with Allen recently and took a brief walk through. It was at days end, just as the crew was preparing to punch out. A few comments:
1. Production capacity at the plant if determined by space is near or at its limit. It had been some time since I had toured the plant. At the prior visit, there were perhaps three or four large table areas, and lots of inventory. In particular, it was at a shareholder meeting where I remember at least three or four large tents were assembled on the production floor. By comparison, now, almost every square foot in the open area is used by tables. A huge 40' or sixty foot long table has been added which helps make sewing some of the larger fabric more efficient. Only one shelter was set up. There isn't room for more than one or two at the most. More double needle machines, etc. What I thought was inventory left outside due to immediate shipment was actually in part due to a real lack of storage space on within the facility. I'd say if table footage as a percent was 40% of the floor space during my prior visit, it probably is twice that now. At any rate, it would be difficult at best to fit any more tables in the production area. That in my opinion is a good sign.
The above naturally led to my asking about more space, specifically if it were available on-site. Some consideration has been made about acquiring more space, if needed. For those of you who have not been at the facility, TVI is one of several business that occupy a large facility formerly known as Merkle press. It is shared by a few large firms. It is located about four miles from NASA's Greenbelt Maryland location, and it is in a much better location than the former site. To increase production should larger orders come in, a second shift would be a possibility I imagine, although I did not ask about this. Clearly though, table space is at a premium. On the day I visited, workers were leaving at 1500 (3:00 pm), so a second 3-11 shift is reasonable.
continued on next post..some thoughts on contract announcements...
Continued....
Reference contracts. We spoke briefly about them. Obviously not substantive particulars, but rather in how they are made. To TVI's credit, they have under Allen's leadership continued to adopt conservatism in their contract announcements. My impression is that Allen Bender, like Mexcom, does not wish to invite speculation in our stock. He provides conservative releases, a welcome change from the un-truths of the prior CEO. More importantly, it helps restore TVI's credibility, and the confidence of its shareholders. The last thing any of us wish to see is a pump and dump. Too many folk have worked too hard turning TVI around. That is why folks like MEXCOM who are putting some of the float into college accounts for their kids, or Roth IRA's like myself don't worry or even want damaging short term manipulation. Anyway, an interesting concept was discussed. TVI no longer is announcing when contracts are awarded. They make announcements when they are delivered. This is good for at least three reasons: First, the above...no speculation on completed contracts before they are signed, sealed, and DELIVERED. Bad things sometimes do happen even after the pen ink is well dried on the contract. Announcing contracts that have been delivered ensures completion. Second, announcing at delivery means that contract should be appearing in the current quarters bottom line. I like that too. Lastly, remember that money and contracts are in part politics. TVI does have its competition. Competitors have economic and POLITICAL pull. We know that FDNY lost many of its command staff. Who does one deal with in contract procurements? Entry level public safety, I think not. If Allen announced early on that he had a relationship with FDNY, do you think that the competition would have tried to make in roads to compete? Why advertise to others your business partnerships before completion, when same might be exploited prior to delivery. Do you think losing personnel key to and familiar with TVI, its products, and management could have material impact on current contracts, future, or both? Fortunately, this was not the case, but Allen's prudent withholding of information until sales are delivered is in my opinion a defensive posture as well as a conservative one.
In summary, I was happy with what I saw at TVI. Not only for myself, but for those I brought into TVI during the BM days. It is comforting to know, or at least suspect, that TVI is doing the right things, with the right people leading them, with dedicated employees.
GO TVIN!
Bayclipper |
