Just wanted to note for you something that CVD Equipment (CVV), one of our past Idea of the Month picks and a stock that I own personally, recently released in an 8-K filing pretty quietly: They’ve had construction delays in getting their new facility up and running.

The plan had been to have the move complete and be out of their old facility by October 15, which itself was an extension from the previous anticipated closing date of July 22. They just announced that the closing now will be pushed back to December 31 because the new facility is not ready due to construction delays.

That doesn’t necessarily mean anything terrible is happening, but it does indicate that the softness we’ve seen in their sales, as they had to focus more on the move and setup of their facility, could very well be continuing for another quarter or two. There’s no guarantee of that, and clearly part of the reason they’re holding the old facility is that they’re using it until the new closing date, which presumably means they’re generating revenue from that site or otherwise doing something productive with it (they have another site too, which has already moved to the new location), but continued friction from the delay is likely to mean that they’re spending more on the move and the construction at the new facility, and that at least some work is being deferred. If it was good news, they would announce it more widely.

I’m not doing anything different with my shares, because I still think the new facility will enable expansion and that they’re supplying a fertile market for their chemical vapor deposition equipment, but I do think that there’s every chance that the shares will take a dip next quarter if they further lower expectations due to the delay from the move or indicate that their sales are not recovering from the intentionally depressed levels they held during the preparation for the new facility (they didn’t push to make sales that they wouldn’t have been able to fulfill). The next quarterly release is expected to come in about a month.

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