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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (55853)	8/14/2015 8:14:25 PM
From: Spekulatius	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (1) \| Respond to of 78702

20% gross margin is very low for a manufacturing company, typically values would be at least 40% gross margins. You can't live from 20% gross margin, since SG&A, depreciation and R&D (if any) comes of from that gross margins to generate a net margin. Most companies cannot survive in a 20% gross margins, that is what. Typically wholesaler would do, but they don't produce anything and are very capital light.