$TPAC Good morning, everyone! This is the start of another great day. If you have not yet scanned the Twitter feed, I strongly suggest doing so. The meeting with Boeing obviously went very well. Bill did not hype it up, but through his factual and transparent discourse, it is evident, even in such an understated fashion, that we will be doing business with both Boeing and AVIC this year. I have little to no doubt about it.
"Excellent meeting at Boeing with 5 bearing folks from most senior to most junior. We laid out a game plan to develop the market"
First off, it's obvious that the meeting was not just a quick meet and greet. You don't meet with five different decision makers at Boeing unless you have already been deemed as valuable before you take your first step in the door. My favorite part is: "We laid out a game plan to develop the market". Does anyone realize the significance of that statement? Read it a few times and let that statement soak in. We may be going international before we know it. I'm not saying that we will get all of Boeing's business as pertains to bearing manufacture and supply, but what I am saying is that we will be getting a significant slice, seeing as we are only one of a few NAVAIR certified bearing companies in the world. And as mentioned before, we are the only NAVAIR certified bearing company in China. On of the big takeaways from the previous sentence is that as long as we are closer to one of Boeing's facilities than another NAVAIR certified bearing supplier, we will almost definitely get the business. Why would Boeing want to pay more for transportation and importation? That would make no business sense whatsoever. My strong opinion is that we are going to get a significant portion of Boeing's business. That may be 1/7th, as we are one of the seven NAVAIR certified suppliers, or it may be more conservative at 1/10th; with modesty out of the way, it could also be much more significant that 1/7th. I would assume Boeing China is in the bag and would venture to guess we will get Australia and/or the Middle East as well.
"TPAC has a couple of things to do this weekend, which should lead to RFQs and long-term orders taking advantage of price and China offsets"
Look at the quote above. Boeing has given us homework with the innuendo attached that provided we submit our paperwork with care and accuracy, they will then upon reviewing it submit back to us a request for quotations. As the first quote said, we have mapped out a plan to develop the market. The next step is coming to terms on an agreed upon price, quantity and initial duration. Bill states above that once we have submitted our paperwork to Boeing that not only should this lead to quotes, but also long-term orders. The China offsets are obviously of huge value to Boeing as well. These offsets may save Boeing a ton of money in taxes, thereby boosting their bottom line. The offsets may be beneficial in other more immediate ways as well. And with Bill's statement giving way to the fact that we will also serve as a price advantage, we then become very valuable to Boeing. Cheaper bearing price, money saved on logistics(importing, etc), tax breaks, and less international red-tape and administrative fees due to having to potential file customs forms for each order requested.
"This gives us a huge opportunity. It also allows us the opportunity to assist AVIC with Boeing & help grow the AVIC/TPAC relationship."
Late 2014 we signed an LOI for a JV with AVIC Harbin. As we prove ourselves to be an asset by serving as a bi-directional bridge between AVIC and Boeing, we ultimately benefit on both sides of the bridge as there will be ways to profit from being the go-between for both companies.
"This is aerospace so things don't happen instantly but we are on the right path to become a significant worldwide player in the industry"
Patience. It truly is a virtue. It is the understanding that even in today's society bent on immediate gratification, knowing that the best things take time and work, is of great importance. Rushing the job is often a recipe for error, and that is not Bill's modus operandi. The fact that he stated "...we are on the right track to become a significant worldwide player in the industry" is clearly indicative of a confidence that only comes with an underlying certainty of capabilities and a predictive analysis that one can provide what most others can't and can be of lesser or equal cost, with a novel product, developed from conception to proof, thus offering to buyers an overall industry advantage.
"I will stay in the States a few more days as a follow up to this meeting to make sure they have everything they need from us. China mid-week"
"@guyatlantic AVIC needs our help with Boeing, so they can push back the meeting in China. This work is a higher priority at the moment."
This screams that the odds and ends we are no tying up for Boeing before leaving is critical to AVIC's business. While speculative at this time, it seems that there is yet another pattern. The scheduling of the Boeing meeting and the trip to China just after was timed intentionally as to secure Boeing and serve them up to AVIC just days later, quite possibly being the green light to AVIC that the deal is sealed between all parties, making the formal announcement of the long-awaited joint venture possible, as Bill has only now been waiting on third-party approval. He is not going to China for fun, nor has he likely intended to go there or return from there empty handed. There is something very big in the works. We are going to see exponential growth from this company; growth of a magnitude that even the most loyal, patient and optimistic longs have yet to imagine.
2016 is going to be magnificent.
***This is my one post of the day. I cannot reply to any comments regarding this post, good or bad.
AI
