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Technology Stocks : ACII - AmeriChip International, Inc
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From: Ted M6/4/2008 9:28:28 PM
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Long-timers correct me if I'm wrong here: The original hope was that major manufacturers would set up the LACC process in their own manufacturing plants. Production machines would need to be adapted if not replaced, and the cost-benefit analysis requires a very long cycle time. I would think this is still very much an option, but it is a hard sell to get a major company to change procedures that end up taking away jobs and may have significant upfront costs. You gotta be able to talk to the right people, who will have to overcome a lot of obstacles to change the production status quo.

With the addition of KSI the company can address the same and other manufacturers but in a different way while they continue to wait for them to order LACC in-house: Outcompete current external suppliers of parts by doing the machining yourself and supplying a lower-cost solution. Parts are made more quickly AND more cheaply (see video on their site for demonstrations). This appears to be more quickly recieved by folks like Eaton: It is much easier to switch to a lower-cost supplier who meets all of the required standards.

As Americhip begins taking market share, larger current machine shops surely will be interested in licensing the LACC process. Aquisitions of such companies is also a viable option.

I re-read the recent annual shareholder letter americhiplacc.com and all of the PRs over the last 6 months tonight. Now with Tier 1 status they really are much more able to bring in orders to become a supplier for the big boys. Lots in the pipeline for 2008 with the big Autos and very soon--45 foot oil pipe threading demonstrations in-house, and the second company mentioned for recurring production--clearly implying using the LACC process.

There are a lot of things going on clearly, and one must be careful, but I'm starting to believe that the long delays in LACC adoption may be over very soon, as it appears that as long as they can produce it, they will get the orders. And, they now say they can produce 29 parts.

Comments from longs?

tedm
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