Technology Stocks : KVH Industries, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Roy F who wrote (198)7/10/1998 11:13:00 PM
From: Roadkill  Read Replies (2) | Respond to of 7026
What are your thoughts on this press release, Roy?

When I first read it this morning, I dismissed it as (1) a rather weak way to support the stock, (2) a way to prepare us for crappy earnings, or (3) both.

Re-reading it this evening -- a little more carefully, I admit -- I saw for the first time the following:

"We believe the result of this positive response may be a ten-fold
increase in TACNAV sales to the U.S. military."

This is a serious statement. The use of "ten-fold", even under the SEC "Safe Harbor" guidelines, indicates dramatic possibilities. The $11 million sold to date has been spread over three years or so. Even spreading the possible $100 million over three years, with existing customer revenues this would create serious top-line growth. Considering that we currently trade at a trailing PSR of about 1, and considering that we would go to a PSR of at least 2 or 3 with any sort of consistent, growing revenue base, this statement implies serious growth in the stock price. It is notable that MKVH didn't say "double" or even "triple", but "ten-fold".

Does anyone out there have any insight into the FOG technology? Does it really add enough to KVH's existing products to stimulate this kind of demand? I'd be interested to hear some thoughts on this.


To: Roy F who wrote (198)5/4/2008 10:26:30 AM
From: dvdw¬©  Respond to of 7026
Note this is a reply; GMLRS aka Hand of Allah
A couple of months ago I linked to a post by Michael Goldfarb about Excalibur asking if we really need that kind of precision system when we have JDAMS and other aircraft-launched, precision munitions.

I remember a comment on a soldier's website that basically said 'You don't want to trust the flyboys and have them not come through for you.'

In that vein, I was really interested to see Michael Fabey's article in today's Aerospace Daily & Defense Report: Army colonel says enemies see GMLRS as 'hand of Allah' (subscription required).

U.S. Army commanders and troops have come to view the Army's Guided Multiple Launch Rocket System (GMLRS) as their "70-kilometer sniper rifle," but enemy forces in Iraq see the weapon in a starker light.

"The enemy is calling it the 'Hand of Allah,'" said Col. David Rice, Army program manager - Precision Fires Rockets & Missile Systems.

For enemy forces, the rockets seemingly come from nowhere, Rice said Aug. 1 during a press briefing on the program.

And one more excerpt:

With their vertical trajectory, ability to cover 70 kilometers (43 miles) in 82 seconds and close-combat precision, GMLRS rockets are becoming the rockets of choice, even when other more traditional missiles or other bombs are available.

Army officials say many requests for the rockets to be used instead of aircraft-launched missiles are coming from the Air Force.

Of the estimated 273 missions in which GMLRS rockets have been used in theater, about 83 percent were accomplished in urban environments and 69 percent were done with troops in close proximity, Rice said.

Not that GMLRS is Excalibur. My point is the Army seems to have at least one very effective precision munition of its own.

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