Hi Ty, Richard...
The value in Simula is the ITS division, and though it has taken longer to develop that I expected, its progress is inexorable. Simula now has Delphi and TRW on its Board, and it is pretty clear that there will a large number of new platforms coming on in the next six months. A check with Delphi will tell you that the company is on target for further agreements beginning some time in the fourth quarter.
There is no question that the ball was fumbled in the latter part of 1997, as senior managers weren't able to control the rapid buildup of the 16G airline seat operations. It took a year longer than what I thought to bring the errors under control, and there is no doubt it has cost me (and my clients) some money.
However, having said that, the company is now on the road to producing under both product lines, and it will show up earnings in quarter three and quarter four.
There is no question that the "street" is disgusted with the delays, but some of us look at the investment process as more than a quarter by quarter race with the rest of the money managers. It counts more to me to be right in the end, and I am still of the view that this is "right," though I have been forced to sit through a very good market while being unrewarded (as yet) for my patience.
One of the fascinating things about this business is that it changes every day, and if I might be permitted the flexibility to mix my metaphors a bit, the race doesn't always go to the swiftest out of the gate.
We will see in due course. At this point, we are merely at the "three quarter pole."
Have a good evening. |
