My takeaways from latest Cummins PR on Feb 18th:
Post# of 3605
Posted On: 03/19/2016 12:06:32 PM
My takeaways from latest Cummins PR on Feb 18th:
1. weak demand for gen equip (only for the time being IMO due to the global recession. I believe demand will increase as a result of CSRV tech, lower emissions, and then there's the hydrogen reactor tech to consider)
2. Wuhan is less than 60 miles (only 1h/45m drive) from the Coates Xianning plant in China. (great news IMO because of the following)
3. “By relocating....we can better balance our capacity with demand, and leverage our global supply chain strengths,”....“We believe that making these changes will improve our manufacturing capabilities and processes, enhance our customer service, and generate efficiencies by further integrating our power generation and engine supply chains.” (Hmmm...leverage supply chains & improve manufacturing processes...Could there be something here due to the close proximity of the two plants?)
My final thoughts - I consider myself a glass half-full guy but get easily frustrated by vague press releases and the constant dilution of this stock. CMI is positioning the company for long-term success and I believe kidmarko's baseball analogy is spot-on, so time will tell. I am glad GC is casting a large net from small engines to big-rigs and that Jack P is on board; something has to catch on after all these years and GC's persistence. Then I started thinking deeper into my last post and thought of this... Yesterday's COTE PR really only mentions ONE of the two generators received from Cummins. Perhaps GC did buy one and perhaps the other was "shipped" to modify and return to Cummins. Hmmm...my glass is still half full.
Holding Strong & Long!
GLTA - Go COTE!
RR
1. weak demand for gen equip (only for the time being IMO due to the global recession. I believe demand will increase as a result of CSRV tech, lower emissions, and then there's the hydrogen reactor tech to consider)
2. Wuhan is less than 60 miles (only 1h/45m drive) from the Coates Xianning plant in China. (great news IMO because of the following)
3. “By relocating....we can better balance our capacity with demand, and leverage our global supply chain strengths,”....“We believe that making these changes will improve our manufacturing capabilities and processes, enhance our customer service, and generate efficiencies by further integrating our power generation and engine supply chains.” (Hmmm...leverage supply chains & improve manufacturing processes...Could there be something here due to the close proximity of the two plants?)
My final thoughts - I consider myself a glass half-full guy but get easily frustrated by vague press releases and the constant dilution of this stock. CMI is positioning the company for long-term success and I believe kidmarko's baseball analogy is spot-on, so time will tell. I am glad GC is casting a large net from small engines to big-rigs and that Jack P is on board; something has to catch on after all these years and GC's persistence. Then I started thinking deeper into my last post and thought of this... Yesterday's COTE PR really only mentions ONE of the two generators received from Cummins. Perhaps GC did buy one and perhaps the other was "shipped" to modify and return to Cummins. Hmmm...my glass is still half full.
Holding Strong & Long!
GLTA - Go COTE!
RR
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