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No, I don't think all my questions will be answered, nor can I predict the specific scale-influenced margin improvements. In past reports, I think that much of the reported financial success was due to investments by Zolt in the stock market (which has done historically well), and unexpected sales in the non-carbon-fiber business. Now that the asset class is moving out of marketable securities, and into fiber production, we should start to see relative improvement in revenue and margins. For example, with reasonable scale, if Zolt is indeed the low-cost producer, we should see gross margin advantages over competition. If you recall the last report, margins were, in fact, rising. I'm also interested in how Zolt was able to achieve percentage earnings increases well above revenue increases. I could assume it's all in margins, but with three different businesses, I would rather wait to see the numbers. |
