Jun. 4 at 2:58 PM
$AIRI Positives:
* Strong relations with Lockheed, Northrop, Raytheon. Starting to make inroads in others.
* Five years of backlog.
* New machinery adds a lot to productivity.
* Bookings way exceed billings.
* Selling at a ridiculous 1/5 sales.
* Supplies critical aerospace components, in some cases the sole supplier.
Negatives:
* Some legacy orders are operationally unprofitable.
* Debt is way too high,
$7.30 per share. That's the main reason for an ongoing loss and cash burn.
Conclusion:
There is a need to eliminate, or way pare down, the debt. Higher margins would eventually take care of that problem but the need is too pressing to rely just on that. Imo a sale of shares in the
$3-4 range would do it. There would be dilution but the elimination of debt would be worth it, resulting in way higher stock ratios and share price rise.
Caveat:
I own lots of this stock.
