|To: robert b furman who wrote (417)||4/23/2000 10:32:00 PM|
|From: Sector Investor|| Read Replies (3) | Respond to of 6964|
Thanks Robert for a great post.|
<<Huge in the future of the FOG Segment is the nice plus that they can be used in determining current flow. They also are primarily (at least initially engineered for motion determination).Two sensors can cover both x and y axis rotation ie tank turret / robot arm / satellite dish's stabilized platform etc.
The real key is developing the etc.>>
It's that "etc" that is truly exciting here.
We know about the communications potential which looks excellent for the foreseeable future.
We know about the lumpy military sales which are returning, and which bodes well in the near-intermediate future. If the military sales boom for the next couple of years, that's great, and it will do wonders for the stock, too, but the real trick is to use that success to buy the time to build other non-military markets that will be larger and more consistent.
That's where the real potential for KVH will play out.
Of your 4 concerns #1 has never bothered me. With all the knowledge I picked up in researching MRVC, which does optical networking, I can see that that move will prove to be the best move they have ever done.
But, I'm coming to this stock 2+ years AFTER this, and just as they are emerging from an extremely difficult period. I can understand that you, having been through the dark times could have that concern.
Concerns 2 and 3 I share, and your encouraging post lends credibility to my own "gut" feel here - supported strongly by the statements management made in the Conference Call.
Concern #4 is probably why they took out the $5 million revolving loan, which I fully approve of. BECAUSE, if they see a huge opportunity ahead for sensor products, the worst thing they could do is to not have the money to move quickly into these markets.
Getting first to market can be critical, because once you have major customers locked up contractually, a competitor usually has to have a "head and shoulders" better product/price/performance to force a switch, and that seems like a difficult challenge to me.
But, just getting there first is not enough, if they can't DELIVER volume quantities quickly enough. Having that loan in their hip pocket was another significant positive from the CC and the 10Q.
I have not met this management team, but they seem to be making all the right moves, and they seem very confident in their future.
I think they are still on track and the tunnel they have been in the past two years is almost over.