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Eastern Company EML

The Eastern Company manages industrial businesses that design, manufacture and sell engineered solutions to industrial markets. The Company has one reportable segment: Engineered Solutions. The Engineered Solutions segment provides engineered solutions to support its customers needs in the commercial transportation and logistics markets. It designs, manufactures, and markets a diverse product line of custom and standard vehicular and industrial hardware, including turnkey returnable packaging solutions, access and security hardware, mirrors, and mirror-cameras. It offers a standard product line of rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles, among other products. Its subsidiary, Velvac Holdings Inc. is a designer and manufacturer of proprietary vision technology for original equipment manufacturers (OEMs) and aftermarket applications, and a provider of aftermarket components to the heavy-duty truck market in North America.


NDAQ:EML - Post by User

Post by CalifDreamingon Aug 27, 2008 4:08am
338 Views
Post# 15412281

Management

ManagementReading the March 31 financials is eye opening.  Insiders have 30MM options (out of a potential of 41MM they reserved for issuance).  At least they are all out of the money and won't be able to sell into the market and pad their already generous salaries/fees.

I see all the agreements in Brazil are just about useless - now the Brazilians are suing each other to determine who controls Tocatins and that puts all the agreements into doubt.  And I see that the local gov't is suing Tocatins and is disputing their purported ownership of the stockpile at the port, so EML may lose that as well.

And then there's the disasters in Ecuador and Peru.  It's sad that EML paid millions to increase their ownership stake in the Ecuador properties in '07...

This company should sell it's Atomaer holdings and return whatever cash remains to shareholders and stop the bleeding.  But I guess management will milk this thing until they wring the last penny out of it.
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