John, Several paths led me to LEIX. I have been researching LEIX since 6/97. I own a Lowrance Air Map GPS receiver. LEIX's customer service, and technical specialists are top notch, as is the product. In fact, Lowrance leaped frog the competition when the they introduced the Air Map, and they were not even an "aviation company". That impressed me.
When the board exercised options in December, about 1.5 million dollars worth, they did not turn around and sell one share, as many with options do. They held. (They bought at 3.5, could have sold at 6.5)
I also have some experience and contacts with regards to their manufacturing move to Mexico. Things are running well. Quality is good. Cost savings are now being realized.
Tight, but logical cost controls are in place. Morale seems good, as I have talked to several employees in various levels.
I see two negatives, which I anticipate will be eliminated. Debt is high, and earnings record have not been consistent as they have had growing ramp up expenses. The expenses seems to be under control. The debt will be reduced by profits. If the stock surges as I expect and hope due to performance, LEIX will only have to issue a "few shares", and bang, LEIX is debt free with capital for investment and growth.
I also have talked to some execs who Rockwell interviewed to run a new division of theirs. (Communication and modems) They spoke very highly of LEIX. (The Rockwell GPS engine is utilized by LEIX.)
I think 1998 will be LEIX's year. They will "Globally Position themSelves" on the investment map.-g-
Good Trading, LF |
