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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gizwick who wrote (57167)	4/23/2016 5:47:36 PM
From: Madmatt112	Read Replies (1) \| Respond to of 78702

Gizwick, some thoughtful questions for you - not "gotchas" :) All quotes are from Cemtrex's 2015 Annual Report from EDGAR at (http://www.sec.gov/Archives/edgar/data/1435064/000114420415071908/v426852_10k.htm) "The Company faces direct competition from companies with far greater financial, technological, manufacturing and personnel resources." "The Company competes on the basis of price, engineering and technological expertise, know-how and the quality of its products, systems and services" Why do you think Cemtrex is well-positioned to out-compete these companies upon the basis of price-competitive advantages? Especially in your context of emissions controls, why is CETX well-positioned (i.e. better-positioned) to take advantage of increased regulatory pressure on industry to control emissions? "Most of the Company’s customers do not commit to long-term production schedules, which makes it difficult to schedule production and achieve maximum efficiency at the Company’s manufacturing facilities and to manage inventory levels." "Many of the Company’s customers do not commit to firm production schedules." I can't see much of a moat around the company - do you? Do you think Cemtrex has hollowed a niche or space in the market, in which they are stronger than their competitors? Some initial questions that floated up as I looked into them.

To: gizwick who wrote (57167)	4/24/2016 3:50:06 PM
From: foreal	Respond to of 78702

I think you are right about the numbers, but I hesitate looking at the management team / major shareholders. It looks like 70% of the company is controlled by the Chairman and CEO, who are a father - son team. The son is 29 and has never had another job. A bit of trolling on his LinkedIn profile suggests he may be a bit 'under qualified'. Just a thought, by no means a conclusion. Also, while their PE is good, their very small market cap could turn them upside down with even just a bit of market volatility. I'm not sure why they are a public company except for the fact they have been around since 1998 - would have expected more long-term contracts and higher EV 18 years in. That said - definitely one to watch.