I think the company is facing some very significant challenges in the upcoming quarters. Some of the better sales and marketing people were foolishly offered incentive packages to leave or left on their own accord over the past year and its beginning to show up in the form of flat or falling revenues. The cuts were done in an effort to contain costs and reduce overhead expenditures. How did that work out for management? Now new management cuts are reaching the point where they are now longer just trimming fat but whacking off organizational muscle and bone. Compounding the problem is the fact that customers are telling us that Moog’s product line is overpriced and always late on delivery. Some of the sales people are afraid to tell senior management the truth about where things are really going over the next six to 12 months. Forecasts are often inflated with the hope that things will somehow magically get better.
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Disruptive thinking and real innovation is non existent at Moog. Senior management's focus on cost cutting above all else is destroying the company. We're becoming another Kodak.
Its time for John Scannell to go. YTD the stock has under performed the the S&P 500 by a wide margin and sales keep falling.
Falling sales, increasing debt and a portfolio of "loser" acquisitions. Small cap stock status we come.
Once again John Scannell has failed to grow sales. Latest quarterly results show another 7% drop
As of 1/15/2015 Short interest in the stock has increased 5.54% to 517k shares
Despite all the management rhetoric about the latest financial results this quarter, Wall Street didn’t buy the Scannell and Fishback spin doctoring and punished the stock with a -6.09% drop in a single day. The bottom-line is net income is falling.
Down another 6% this week
Wall street analysts keep down grading their opinion of the stock.
Its certainly something to think about. Moog is now a 60+ year old company that pays no dividends, has under performed the S&P 500 average YTD and operates in a competitive market space.
The upside of all this operational efficiency improvement and cash harvesting activity is that investors will be able to extract the last penny of potential gains from Moog and then turn around and reinvest the proceeds in newer, more innovative companies with better future growth potential. This capital mobility is unfortunate for Western NY and existing Moog employees but good for the overall US economy.