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gordon939 gordon939 • Jul 15, 2011 10:16 AM Flag

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Two Numbers
Hey, Jimmie, you're barking up the wrong tree. If you look at the annual report, on page 30, you can see that most of the inventory problem has been written off. If the earnings come in weak it is from cancellations from backlog, or current sales. Discounted sales from written off inventory are all accounted for as a plus in 2011.
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- littlejimmyvalentino littlejimmyvalentino • Jul 15, 2011 10:19 AM Flag
  
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  There is still a significant inventory problem that has not been written off.
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  - gordon939 gordon939 • Jul 15, 2011 10:34 AM Flag
    
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    you are right. They still need to work through about 172 million dollars of inventory and even though this has been written down and a new lower cost basis has been created, the potential for loss exists vis a vis the new cost basis. So you have the lower margined product getting pushed out the door while they are trying to maintain higher margins on the new stuff. Almost impossible to figure what the GM will be. And I'm not mistaken.

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