Harmer may still owe them money, but the note would be 100% reserved in the allowance for doubtful accounts. There is no way KPMG is allowing them to carry that note at $3.3 million. Also the percentage of business coming from outside the U.S. may be down, but that does not necessarily mean international expansion is not happening. If sales in the U.S. grow faster than international sales it would cause the percentage to drop even if international sales were growing. I agree that it would be preferrable to see the percentage of international sales growing, but with U.S. sales growing by 30% its understandable that sales in new markets would not be able to keep pace with U.S sales until they are able to get a wider distribution in the international markets.
I do have to give you credit though in_vizz, you are the only short on these boards who has rational reasoning backing your position and I agree with most of what you post. I bought 7,200 shares of this stock last December because of HzO and have stuck with it through all the ups and downs of the last 12 months and have no plans to sell now.
Thanks for thoughtful response..I agree! There can be reasons for percents dropping that are in fact favorable...Office depot/Staples sales etc..Market penetration is huge and growing..Lots of coupons I note..Expect to see huge black Friday and xmas numbers IMHO!