Looking for places to lash out. This guy's dumberthan a bag of rocks....



RE: RE: competition
7/12/2012 4:09:40 PM  |  | 337 reads  | Post #31269836

I disagree with you gwplant.  At least on the view of the dividend coming into question.  Last quarter they made enough cash to cover the div on only around 200 to 250 tanks.  By this fall, they are going to have the cash flowing in from 500 tanks.  Yes, as competition comes in the margins will go down but PSN will be able to cover the dividend (+ growth?) on pure volume alone.  The 100 million credit facility was obtained to give future flexibility in the ability to become a 'full service' fluid solution provider.  Even if you stop tank production at 500 units and cut margins by 50%, there is still enough money coming in to keep everyone happy.  IMHO