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Replies to #40 on Audiovox (VOXX)

littlefish

07/14/17 12:02 PM

#41 RE: swampboots #40

Increased cash flow and growth in back half. Also, a chunk of their auto Wins are outside Hirschmann although Hirschmann was their higher margin biz and also a sizable portion of wins as well. They're also starting to vertically integrate better as a mnfctrr and distributor in US as time goes on vs mostly distributor history. People are looking at the last couple years as a norm operationally but I think are completely off because they're downsizing the very major impact the Euro deval had on their ops. They're doing several things better that r getting partially masked by Eyelock losses.

Give this a couple Qs and I think the light will be clearer. Last Q got whacked by hhgregg and distribution channel backup from a major retailer (kinda curious if that might be Walmart or Amzn). That's going to hurt Q2 a bit but this last Q should be the bottom. Thei risk is Eyelock though if they keep pouring $ into it as a pet project of John the chairman.

All IMO only. As of today, VOXX is once again my largest position.