RE:Acqusition and warehouseThe acquisition is a very interesting strategy that I did not consider.
Acquiring a downstream supplier of security tags is an innovative way of gaining access to customers who may want a costless, but more effective, system that gives them not only security but also information. While INEO can make money off the security tags, they can also make money off the accessory information.
There is no indication as to whether or not INEO overpaid for the security tag business.
The deicison to stockpile inventory in Vancouver, Washington so that US deliveries are faster does not make as much sense. Shipments of product over the border are fairly easy and it does not seem to me that a delivery one or two days earlier is important. There may be other motivations for positioning within the US.
We shall see how these decisions play out.
In the meantime, I am still waiting for announcements from their production and sales arrangement with Prosegur Security.
The technology has more applications than just store front security.