John and Scott,
My perspective is more objective on this stock since I am no longer a shareholder. I have no intentions of bashing anyone or causing the price to drop. IN FACT I STILL WISH THE OPPOSITE! People own it because of their own viewpoints and perspectives of its potential and should continue too. It is shame to see the loyal shareholders of STAX bash each other because of STAX performance. I must agree somewhat with Scott (ignoring anything personal but just objective) however with no ill or rude intention to you John or anyone! Lets stop for just a second and take a real look at just a small cross section of what has transpired:
(1) I have also sent countless emails to Stax with no response! WHY NOT? IF the info requested was privy info then at least I could have received a reply as to why it was privy info. Many of us were very loyal for a very long time, it would have seemed like a simple reply answering those things would have been the least to expect.
(2) I have asked simple genuine honest questions over the past year that I truly believe a shareholder should be entilted to know and yet was never informed on many of them. Does this seem right to you? Maybe you know the answers and therefore remain confident in the company. I believe it is a benifit to share all information with other shareholders as one discovers them. We are all one team with the same objectives!
(3) Take one minute and read last years STAX business plan again as I am sure you have many times before and you tell me where they have even come close to meeting their clearly stated objectives (ie. $4M Net income was predicted) or stuck with their original business plans. What about the profit in September? Where did that go, right out the door?
(4) What has happened to the $9M order with S&B and the $25M order with ASA alloys for just plain SS? Don't see hardly any of these revenues!! What does that tell the shareholders. While we all know those were orders to fill (not hard contracts) as STAX was able to produced SS they have a willing buyer? What happened here (the answer to the question I ask countless times before now shows in the Balance sheet). No wonder I couldn't get the answer, my old fears were confirmed in my opinion (only).
(5) STAX has completely changed their business strategy. They have decided to concentrate on Bridges and SS rebar IMO. A huge market no doubt!!! But what has happened to producing products for offshore oil refineries in corrosive environments, food and beverage and of course the countless nuclear applications. Do we shareholder know all of the political hurdles and technical hurdles of using SS rebar in the US? I think there may be many and I think the shareholder MAY not know all of them. Just my worthless opinion however!! No doubt a tough task for management and the company but if I remember we were all expecting these hurdles to be behind us by now. What has happened?
(6) What about product certification? Tons of testing completed outside the US, tons of welding test conducted by the british institute. This product is not brand new! What is the hurdle? Is it political or technical or both? Why don't we know? Maybe some of you do?
(7) What about the fact that STAX is behind on the second mill and behind on getting one single Nuovinox order of signifigance. Its almost a year later!! Do you not find this a bit bothersome?
I could go on and on but it is pointless too! It is for these reasons and many many more I would guess that Scott may have stated what he did. Scott started this board and I beleive is or was a loyal investor as I know you have been too, John. Maybe you know the answers and the exact reasons why all of those things I have noted above are just one mans worries and If so you should share your insights with others and calm the storm! I chickened out thats all.
Maybe long term they can still turn it all around or someone will buy them out (hypothetically speaking, no facts to support this just a passing thought) Maybe this is what the institutional investor knows or has figured and why they continue to support them. What is the business strategy from here and when can investors intend to see things turned around? Those that own huge shares should sure know these answers! HH states mid 1998 in his article, but do you have the business plan that shows you that STAX can get there? Can they obtain it, is it believeable and acheiveable, I wouldn't know I haven't seen it. These were all things that we had at one time but not now?
Honestly good luck, for your sake, I hope I am a 100% wrong. I will check back in Mid 1998 to see that everything is on schedule. Maybe SS production will be significantly increased to give STAX some needed cash for that high burn rate of approximately $2M a quarter that we have been seeing (just a cuff estimate)? Good luck, I'll check back in mid 1998. I am only expressing my own viewpoints, do you own homework! Look back at the business plan just as a start! |
