Zoltek does NOT have partnerships with BFGoodrich or TRW. They have sales contracts, which is a quite different situation. Also BFG has rights to buy Zoltek to protect their source of oxidized pan. Notice a few things here. Like the choice of words. There is a major difference between a partnership and a sales contract. There is also a major difference between oxidized acrylic and carbon fiber. But Zsolt Rumy calls a sales contract a partnership and counts oxidized pan (acrylic) as carbon fiber production. They are different and the price on oxidized pan is about one half that of the carbon fiber. But Zsolt continues to obscure the true situations by using words to most investors who choose top ignore or do not understand the difference. He also counts recycled scrap as carbon fiber production. So he had one carbon fiber line with a million pounds of capacity which never produced 500,000 pounds in a year, bought and resold a million pounds of scrap, and sold 1.5M pounds of oxidized pan and told you idiots that he had 3.5 M pounds of capacity. Are you noticing a trend yet? You want to buy back in? Are you sane?
As for the reasons for the fires in Abilene, I have been told the exact design flaw that is causing them. But remember Zsolt saved all this money by buying them cookie cutter (all alike) and has another 11 on order. Cheap equipment is not a bargain if it doesn't work. This problem was manifested at St. Louis and has only gotten worse in recent months, cutting production there also. And remember another thing, every drawing has Zsolt's approval.
The Texas article is right on track for as far as it goes. I had been told that the WSJ was asking around and talking to people. They did a remarkable job in not printing a lot of things that they were made aware of and could not substantiate. So in your words, they must be credible. And since I'm not... Remember the Forbes article about how Zoltek was taking sales and moving them around to make their numbers. Well, think about the possibilities of owning a foreign company which represents 80% or your sales with distributorships in obscure countries, places where there are no generally accepted accounting practices and accounting firms don't go to count barrels, etc. Now, looking at the last year's results, MV has had price increases, which resulted in sales increases which resulted in improving margins and wonderful profits, all the time being in a very price sensative commodity market. Are there a few bells going off yet??? And remember, NOTHING happens at Zoltek without Zsolt's explicit approval so don't buy the excuse to the Forbes article about it being a clerics mistake.
And when you buy back in, get the certificates, you may need wallpaper some day.
Regards
Jake |
