As a suffering shareholder I've been strugging to understand how OEC has failed to build any momentum with defense contractors and diversify into other industries. Yes, they continue to win the odd trial production run and continue to support some legacy lines but managment have failed to build any scale in the business - in fact its been the opposite with customers pulling back orders and management winding down inventory while being handed some government grant relief to stay solvent. This has been even more dissapointing given that, for a drone engine manufacturer, the Ukraine War should have been what the pandemic was for Zoom and remote work businesses.
Last week I stumbled across this start up (
https://invest.liquidpiston.com/?tnames=lpihomepage#technology) who claim their engines are 10x more powerful and . Over the last year they were awarded $30M of US defense grants to advance their technology and have seen their revenues grow by 156% and are already profitable.
Truth be told Im no expert in heavy diesel engines but the fact the US defense industry has fallen in love with a new engine supplier at the same time that contractors have been pulling back on OEC has been enough to destroy my thesis. I had originally got comfort from OEC's tech being market leading and invested at a time when there appeared to be more momentum in the business. This has failed to eventate and with what appears to be formidable competition in this space, coupled with management's lack of progress, now makes me a seller.
Im out of OEC as I see the only promising exit is a takeover (by someone like LiquidPiston) to grab whatever valuable IP we do indeed hold (if any). Curios to know what remaining believers in OEC think of LiquidPistons technology and how it compares to OEC's offering.
Good luck to remaining shareholders. Hope there is a happier ending for you than there was for me.
