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To: iknowlarry who wrote (890)4/7/1999 5:31:00 PM
From: Labrador  Read Replies (3) | Respond to of 2702
 
>>Their products are low margin.

Larry, I am confused by your post for two reasons. One, every a bubble gum mfg makes money if they have volume. So to the extent that it is only a $2 part, so what (by the way, I think it generally cost more.

Second, and more importantly, when I read the 10-K, I see that the company has a gross margin percentage of 55%, up from 1997's level of 52%. So the margin are definitely present. Take a look at their income statement, net sales of $18.1 M, gross profit of $9.96 M.



To: iknowlarry who wrote (890)4/7/1999 5:47:00 PM
From: Robert Sheldon  Read Replies (1) | Respond to of 2702
 
*They have 2 new production lines but even at full capacity they won't make much. There is only so much money you could make with a 2 dollar part.*

Where does you 'expert' knowledge come from? Please substantiate your thoughts . . . perhaps it is time for this thread to be 'really' educated. I'll pick up the pieces if you stumble.