Maverick: Perhaps I should have tried to confirm what was told to me before posting, but I didn't. Starting with Hexcel, which is now the number #2 producer of carbon fiber, I understand that htey have increased capacity by over a million pounds. Hexcel is a company with revenuses approaching $1Billion and is the leading U.S. manufacturer of advanced composite materials. Hexel bought the carbon fiber business from Hercules about a year and a half ago and certainly has the capital to expand as it thinks is necessary. There are a host of foreign (Asian) producers which have also increased production, and with the signifiacantly strengthened dollar, these products could become very inexpensive. On the other hand ZOLT MAY indeed have a significant man-tech in place with which it will flog the competition -- I don't know.
What i do know, based on their financial reports, is that their financial practices are highly questionable, and their utilization of their working capital, given a supposed man-tech advantage, is highly conservative. What this means to me is that the company could be a roaring success, it could go down the tubes, or it's just a 15-20 dollar stock. I'll continue to watch since I suspect it's the latter to see if I'm right. For all the longs, I hope I'm wrong.
By the way did you note that in post 347, the "I buy the dips and tuck it away investor" now tells us he owns no ZOLT stock, he sold it all some time in the distant past. --although-- In early September he told us that "his stock could go to zero" and he's still be OK what with his profits. -- but he didn't own any.
Good luck to the ZOLT longs. |
