RE:RE:RE:RE:RE:RE:RE:Share Price PressureThe street certainly hasn't liked the strategy for some time now and that's why the stock trades like a call option. Also with no sell-side analyst coverage it means investors are left to their own devices to do their homework, which frankly is not an easy task for most given the time required. The stock also trades on limited volume meaning it doesn't take much buying or selling to move the stock significantly in either direction. Even the bid/ask spread is super wide so day-to-day fluctuations, regardless of bullish or bearish, really don't tell the story.
The key question to ask - Is it different this time? I think the Komatsu announcments in particular are the most convincing sign to me that yes indeed the situation has changed and how the companies products are viewed is changing too. Being on board a Mahindra tractor for a demonstration in Turkey might seem like small potatoes but we're talking about partnering with one of the largest tractor manufacturers in the world. The implications are signiciatn! A big company like Komatsu / Mahindra doesn't put their reputation at stake with just anyone, so clearly there is something in these data points that validates AJX products, capabilities, and positioning. Do we need more evidence? Yes absolutely and their could be more evidence on the way shortly. Thus far we've seen very little materialize from the Kubota settlement but a typical development phase when onboarding a new client can take 2-3 years so we should start seeing some signs in 2022. What comes next of the Claas relationship will also be very telling. Nobody is mentioning AGCO but now that one of their biggest competitors CNH acquired AGCO's main precision ag. supplier (Raven) I suspect they will be shopping. AJX recent announcements regarding Bosch suggest the company knows exactly where they fit in the ecosystem and how they add value. All-in all BM seems like a very strong and capable leader, something we've not seen in the past though RH wasn't bad (he was brought in to clean SK's mess and was replaced by DV which turned into a disaster. DV had too many run ins with customers and as one poster on this board indicated customers simply would not do business with DV). BUT this is BMs first gig in the CEO chair so its yet to be proved if he can deliver. I'm encouraged by the turnover of leaders at the company which tells me they are moving away from the old complicit way of thinking and moving towards eager, competitive, hungry. BM said when he first joined the company that investors should judge their tems success based on the numbers and that's exactly what we should do. COVID was unforseen and no question that impacted the pace of business development. 2H21 is supposed to be a better year but the YoY comps are quite easy to beat. I'm looking for something more dramatic, especially in the fourth quarter. That dramatic can either take the form of realized number but more importantly I'm looking for an understanding of the growth trajectory in 2022 and beyond. We shall see.