Gary, I agree with your conclusion regarding the one line of production out of four. Obviously, can't move less than a full line and I don't think the regulatory approvals can be obtained unless you are in production. My impression, and recollection, was that the new plant would have capacity for six lines with two planned initially. I suspect it is more a shortage of skilled labor than machinery that is the problem but that is pure speculation, I do think that management owes the shareholders an explanation of this strategy, and sooner rather than later.
As far as predictions of stock price, well I'll leave that to the so-called analysts who rush on to the field after the battle and bayonet the wounded.
All I can say is that, looking forward, (through the tears over that new Lexus I lost today), production should be at least 100% in January, and how much of that product can be sold overseas (from the new facility, the 25%) will determine 1st quarter sales (revenues).
Some managers like to wait til they have good news to follow the bad before announcing the bad news. I'm hoping this is the case here.
I increased my position by 50% at 12 7/8 this AM. Even if we are frozen at 75% sales for a while, this stock is still earning $1.00 per share, I think a p/e here of 13 is too tempting to pass up. If we don't lose half the short position in the next two days I will be very surprised. I can't see anyone wanting to short this or stay short at this price.
My sympathies to those who were forced to sell today.
Zebra |
