Mike,
Under the surface, this earnings report is fairly ambiguous.....
When I get begind the numbers a little bit, it is obvious that it would have ben nice if gross margins had been a bit higher, but the earnings shortfalls (versus last year and versus my earlier projections) are largely due to growth in SG&A. But it is not entirely clear why it grew; to what extent is this the result of expensing items which represent "investments" in one form or another.I am very conscious of the phrase in the latest press release that "We made a significant investment in technology in the fourth quarter,the benefits of which will be realized in future periods".
Actually, if you look at the trading, I don't think that it was actually "down" yesterday, but instead traded a few shares (2,400) at the bid, without any change in the spread. Technically, ABIX is also ambiguous.
I'm very eager to see the 10-K Report, which should be out around the end of the month. For the time being, I'm continuing to hold the stock, and might even be a buyer if there is a significant decline.
Bob Davis |
