Post by
Thethruthhurts on Mar 25, 2015 1:11pm
Death of a Dinosaur
The fact Armtec can't make money with such a decent sales number speaks to my droning points of the past two years. 1) The company is a dinosaur. "lean manufacturing exists in name only. Their production costs are not competitive with the market and 2) they are getting screwed on raw material purchases. Their lack of cash flow has hampered their ability to hedge their core production commodities. Again all points to a poorly run company. Anderson basically hiding on the call from his fiduciary responsibilities to share holders and not discussing openly what the next steps are is abhorrent. On his watch while he presented himself as a fiscally responsible operator he jacked the overhead to his bundle of small companies that were previously family run. A colleague of mine always points out to the head office overhead lines and how much they have crippled performance. There was no need to open the Concorde office. It is a massive waste of money that the company couldn't afford to borrow let alone spend. The road to newco is also a sham. Few companies in the bundle make any sense and for maximum value the dogs need to be bundled away from the best performers. Hopefully better analysts look at these last numbers and can glean a sound perspective on what Armtec truly is. Junk ! and shame on us all for every thinking anything different