RE:RE:RE:RE:RE:BAD news for BUSIf you are only wondering about ARBOC now, then your money was truly dumb weak money. Just because you didn't know about ARBOC doesn't mean the market didn't, nor that BUS is somehow at risk or something. nor that ABG chose poorly in aligning with BUS as a tech, design and manufacturing leader. Nothing changes for BUS because of this event. It may in fact bring more attention to BUS from potential acquirers. Its tough when you realize that you haven't done your DD until after you've invested. Rookie mistake. Good luck. DD
graduallygetthr wrote: Has anyone taken a good look at ARBOC's product offering? They already have proven themselves across product lines. They have several products models in the area that BUS is attempting to enter, the 21' chasis, as well as several bus models providing 29', 32', 34' and 35' options. They have been in the business for 8 years, and are on schedule to deliver 360 buses this year, and 500 in 2018. They recently delivered their 2500th product. If you compare that to BUS's trajectory, it is not surprising that their orders have slowed, and it might be reasonable, even prudent, to expect that BUS's deliveries might not get to the 350+ level for at least 5 years or more.
NFI will be a direct competitor with economies of scale that Grand West does not possess. ARBOC's models use North American made chasis, which adds an additional element that BUS lacks, the made in the U.S. for the U.S. This is a constant concern of investors that was communicated to me by John D. It's one of the most common questions he receives.
They also have the largest distribution network across the U.S. ARBOC models have also been purchased by some Canadian cities.
https://www.arbocsv.com/index.php
I'm not pleased with this development, as it adds a significant competitive element that I hadn't factored into my assessment, but now, NFI's abandonment of this space makes perfect sense. Why spend money to develop your own products when you can purchase a widely adopted and profitable product line to compete?
I was hoping for $1.80, but now I believe that the majority of weakness has also to do with the pending purchase of this company by NFI. The smart money always seems to be one step ahead.