Hi Jaime, Michael,
I made a management check this morning, and was able to learn that the company is making progress on the government, ITS, and 16G fronts. As of this moment, they are "on target" for meeting the objectives highlighted in their call with analysts concurrent with the third quarter earnings report.
Operations are particularly improving in 16G, and senior management still believes that significant profitability will achieved following the consolidation of the San Diego plants in mid-April. Improvement was shown in the fourth quarter, and more is likely in the first, but the real jump in earnings will come following the consolidation.
CABS and C17 are on track with what was known and explained following quarter 3.
The ITS family of products is having "greater interest" than at any time in the past. (As an aside, I will be in Detroit in the latter part of this month to view the SAE Conference in person.)
My guess is that the softness in the stock is *totally* related to margin related problems and a lack of fresh interest in the shares. For that interest to develop, it appears to me that Simula will have to announce some new ITS related business. In the meantime, we have to await further industry developments, including the publication of the new Standard 201 testing regulations.
Nothing has changed fundamentally in the last two months. Of that I am sure. However, the market has changed: It now demands "proof", rather than assuring words, that the ITS business will be expanded beyond the Agreements now in force.
Have a good day. |
