RE:RE:RE:RE:RE:RE:RE:time for AF and team to get SERIOUSClarence, good points on access control. Look at the bigger picture though, there's a lot of cross-selling possible with smart video and access control. We'll have to let them reveal their sales figures down the road but their reasoning was that access control is a much larger market than video surveillance alone. Do you think their embedded ACM controller is a good value proposition?
They can also writeoff financing costs and amortize the Telus building purchase over a long period. There are limited options for real estate modern and large enough to house a world-class administrative and engineering workforce so it's also possible renting was not even an option. The cost savings are just icing on the cake, especially since there's no lease to renegotiate over time. Their manufacturing facilities are located in suburban industrial parks for staffing, cost and shipping reasons.
Clarence wrote: @ ersk. Point noted on cap. That said, I believe I have seen comments here (true or false not sure) that canancord was often absent from purchasing these 60k shares a day? Also, why are investment firms not buying and holding if such a great deal? You are not correct when it comes to panels. Panels are the biggest expense. Costs money to make, warehouse, improve upon etc Each doors equals approx $600.00 in sale value to them. You can have 1000 doors (very big job) and run just one copy of software (with 4-5 workstation licences) for maybe $1,800.00 in software so almost all a systems cost is in fact hardware. Yes they make easy money on software but thats not biggest cost in any decent sized card access sytem. If a small system is needed, there are even less expensive options than AVO. Trust me, you can get a 2 door panel for 500 and free software. Soooo if they are going after mid sized jobs then 100 doors is likely their norm. So my calculation of how many panels it takes to make up the 17 million price tag still holds. If anyone wishes to let me know if that 17 million can be paid off with significantly fewer panel sales, by all means let us know but till then. My estimate holds. Remember that was just to buy it, you still need to support it so that annual cost still needs to be paid and adds to the 17 million! Does renting not provide for greater tax right offs and thus reduce current costs? Could they have not used the money to advance sales instead? Did they also need to purchase where they did. Could they have not found something less expensive in an industrial park?. Remember that is our money they are spending on nice digs. Get over the ego and focus on sales of cameras. You do not need sexy digs to manufacture and ship a blasted camera.