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To: Paul Senior who wrote (33615)2/22/2009 4:26:02 PM
From: Jurgis Bekepuris  Read Replies (1) | Respond to of 78998
 
Paul,

Perhaps you misunderstood. Silk talks about gross margins, not operating margins. E.g for PFE finance.yahoo.com gross margin in 2007 was 37/48 = 77%, operating margin 7.5/48 = 15%, net margin 8/48 = 17% based on Yahoo data.

You are very unlikely to find companies with operating margins above 50%.

I don't endorse gross margin use, but just wanted to clarify.