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Cube Psytech Holdings Inc. T.P


Primary Symbol: P.CUUB

Cube Psytech intends to trade on the Canadian Security Exchange. There is no date set for the closing of their Initial Public Offering at this time.


P.CUUB - Post by User

Bullboard Posts
Comment by musingon Feb 01, 2006 9:38am
294 Views
Post# 10281655

Conference Call

Conference CallIt was pretty interesting. The issues are confined to some yard switchers and do not at all affect the much more important road switchers. And even with the yard switchers, those in light to medium use are just fine. Those in heavy use, apparently much heavier than anticipated, are having battery life issues. And the solutions are simple, either battery replacement or bigger gen sets, depending on each particular use. I think I heard management say that the heavy use of some of the units is 10 times what was expected and this is the source of the problem. Indeed, McMurray Whale of Sprott asked whether there is an element of good news here given that the units are apparently doing more work and hence are more productive than anticipated. Another interesting comment was that it is anticipated that one of the road switchers, which doesn't have the issues that lead to the provision, may become the unit of choice for yard work, replacing the Green Goat. So, on the whole, its not nearly as bad as I feared. The CEO made it clear that there is certainly enough money to for all RailPower to do all it has planned to do, that there are virtually no competitors for the yard application and the market is too small for more than one manufacturer but that RailPower will have competitors in the road switcher market. However, he pointed out that this latter market is very big and very important to the railway companies.
Bullboard Posts