Not so fast Grasshoppers. Contracts for heads a
Post# of 3601
Posted On: 03/20/2016 12:39:10 PM
Not so fast Grasshoppers.
Contracts for heads and valve trains required by Cummins are years out and have penalty clauses if delivery dates, quantities or designs are altered.
Now, consider a headline from Cummins.... "no more valves on our engines".
Can you not see the increased costs that would have to be paid for shortening the supply cycle, contract alterations and possible law suits? Add to this that their market is in a downturn and trying to recover.
Cummins, as are others, are eyeing the very real fact that it is better for the customer to order a standard engine (continues supplier discounts), have Coates pull the heads, set the heads aside as spares (possible cost share with Cummins replacement parts for older engines) and then add the new Coates CSRV under a separate warrantee and maintenance agreement with Coates.
George and Gregory are light years ahead of what transpires here but it is fun to mess with the PRs received. Do I know for sure what is going on at Coates International? I just have a decent appreciation.
Buy COTE and hold what you have got already, IMO
Contracts for heads and valve trains required by Cummins are years out and have penalty clauses if delivery dates, quantities or designs are altered.
Now, consider a headline from Cummins.... "no more valves on our engines".
Can you not see the increased costs that would have to be paid for shortening the supply cycle, contract alterations and possible law suits? Add to this that their market is in a downturn and trying to recover.
Cummins, as are others, are eyeing the very real fact that it is better for the customer to order a standard engine (continues supplier discounts), have Coates pull the heads, set the heads aside as spares (possible cost share with Cummins replacement parts for older engines) and then add the new Coates CSRV under a separate warrantee and maintenance agreement with Coates.
George and Gregory are light years ahead of what transpires here but it is fun to mess with the PRs received. Do I know for sure what is going on at Coates International? I just have a decent appreciation.
Buy COTE and hold what you have got already, IMO
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(1)Coates International (COTE) Stock Research Links
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