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To: kidl who wrote (37913)8/11/2015 9:38:25 PM
From: Matthewd98  Respond to of 49402
 
IMO, the stock fell because the market was anticipating a lackluster Q2. The regulations created lots of uncertainty and consequently OEMs cut back on production. The good news is production should ramp up like crazy in Q4 and for the next few years due to the retrofits and the all-time high backlog.

If you look at how quickly management grew sales from Q1 2013 to Q1 2015 prior the regulations, you realize it bodes extremely well for the post-regulations opportunity. Here are the pre-regulations numbers:


Q1 13' revenue: 2.014M
Q2 13' revenue: 2.660M
Q3 13' revenue: 3.555M
Q4 13' revenue: 4.902M
Q1 14' revenue: 5.480M
Q2 14' revenue: 5.648M
Q3 14' revenue: 5.936M
Q4 14' revenue: 6.752M
Q1 15' revenue: 6.871M