Herbert, I'm pleased to hear someone "....hung in there today and bought more at these bargain prices." I have spoken with institutional investors and brokers that have been acquiring stock. A major reason given for present weakness is margin selling, which is thought to be diminishing. The 1/8 point drop today may cause slightly more, but IMHO not enough to hold the price at these levels.
I remember posting my production calculations and concluding that assembly line 1 alone should make the company profitable. Lev's confirmation of this during the August 12 conference was very good to hear.
The personnel increase from 65 to about 115 in Northern Ireland should be a good indication that developments that we have been waiting so long for are imminent.
It should be only a matter of weeks, perhaps early October, before analysts walk past three assembly lines turning out batteries for various customers. When they take out their calulators(or laptops with weak batteries) and correlate what they see, they may very well verify that $1 per share earnings per assembly line at full production is still a reasonable rule of thumb. They may start conservatively with maybe 50 cents, but $1.50 per share earnings should still indictate a $30 share price with a PE of 20! If you consider that the NI plant has room for 10 assembly lines, it gets better.
As Cal Reed stated during a prior conference call, four coater/laminators appear to have capacity for 80 million cells per year, depending on size. At 2 cells/battery for cellphones and 3 per battery for laptops, it would appear that there is enough laminate capacity for about 30 million batteries per year.
I only wish I had all my invested funds available to begin acquiring stock now. I have no doubts about the company's success. IMO the best strategy is to own as many shares as possible without getting into margin trouble!
Best Regards, FMK |
