as Bartender claims , that is telling me that their is little to no overhead to sell this $17M in inventory. Once sold it would add close to $17M to their earnings. That looks VERY good to me. The overhead expense is already on the books & profit will show once it is sold. ZOOM should be going up, but most investors are too ignorant to see this.
I am buying more.
Ugh if you don't understand BASIC p&l concepts, do yourself a favor and put your money in a bank earning 0.2%
The only way they are going to make money on $17mil in inventory is to sell it for substantially more than $17mil.
This company is giving away their product. They have no price leverage.. Either they boost the sales of their own handsets ASAP or somehow reach economy of scale that allows them to eek out some margin.
Let me guess. You think that if they sold their $17 million in inventory this quarter for $17 million, that they report $17 million in profits on the next earnings report because they already paid for that inventory in the previous already reported quarter correct?
Sorry to break it to you buddy, it doesn't work that way. The respective cost of goods sold, expenses, etc. of the inventory that is finally sold only becomes reflected in the financials the quarter they are sold in.
They don't record it as cost of goods sold and expenses in the previous quarter. In the previous quarter it instead counts as a reduction in cash and/or an increase in their accounts payable.
what they heck kind of accounting school did you go to. That is not how you calculate financials!
The inventory cost offsets the selling price to get the gross. Inventory is not overhead expense.
that said, I finally took a small position in ZOOM. Going to wait to see if this goes back under $1 before I add more though.
Ummm, inventory doesn't go to sales until the product is actually sold
In order to sell a product, you have to pay salesmen. And warehouse space isn't free.
Product doesn't sell itself for free.
If you think it does, you must be a civil servant.....
Having inventory is good the cost of the goods and production are allready accounted for.
You do have to sell the inventory though, which I am confident they will, as was stated in report, the first half of the year is expectedly slow its the 2nd half that has higher expectations. 17 mil.n inventory is a plus.
You should not be investing if you think that. They have to sell the $17M in inventory for more than $17M to have earnings. If they sell it for less than $17M they will have a loss. Do you get that simple concept?
Amazing how DJ has unlimited funds to invest on a pig that he doesn't make any money on. Or rather, he's not actually buying, just pumping for everyone else, hoping he'll recoup his bad investment