Never listen to management as a foundation for investment thesis unless you are a share flip pumper. Look at the business, the history, what is holding things back, etc... the chairman here is a blowhard that gets to stay that way because he controls the company. He also has built a bigger and better business over time in terms of creating good jobs and hiring people. They've glided away from distribution to more vertical integration with US manufacturing of stuff like rear seat infotainment in Naples or Klipsch speakers in Indianapolis.
The real problem is this is a competitive business where obsolescence and reinventing products is constant and management constantly remains over optimistic and slippery when it comes to being up front with investors. The other problem is their overhead needs to be reigned in if John wants to see the public take their share value more seriously. They've taken a profitable mid teens GMs business roughly a decade ago and turned it into a mid-high twenties GMs biz that loses money.
These problems I think begin to become outweighed by the underlying business potential in near and mid term if they can avoid too much inventory hold on the balance sheet (something that came up in comments on CC that a major customer is putting inventory risk more on the company).
Right now peeps see a mngmnt team that is not forthcoming nor visibly looking at direct shareholder value enhancement so they're penalizing the company's value. I personally think once Q3 gets reported in January next year that people will see the engine light more clearly even without Hirschmann. Outta time, will try to type more eventually. Good luck.
All IMO only, hope that wasn't disorganized rambling on the fly.
I don't mind stealing bread from the mouths of decadence... But I can't feed on the powerless when my cup's already overfilled.
-Temple of the Dog
