I would like to get someone elses view on the FX benefit that
@BPAA purports, as I believe it is misleading.. yet I'm being told by him that I need an education.
I don't think a stronger USD will benefit PNV as the bulk of the cost base of the business and the revenues are derived in USD.
He also states that the gross margin is so high that any sales figures are essentially profit. I disagree as you need to take into account other costs apart from manufacturing costs to derive the true operating margin of the business. The financials do not provide what are fixed and variable employee costs, so we can't make a meaningful estimate on what the true operating margin is, so in the absence of that we can look at the profit actually generated by the company since inception, or even last year. And sales by no means equals profit.
Two statements made which I think are both misleading, and have provided reasons for why I think they are misleading.
Usually if someone talks some sense, even if you are wrong, you acknowledge it and move on.
Kudos to
@rbm3 for manning up and accepting that his initial post was factually incorrect. You acknowledge and you move on, and I won't take offence at the initial swipe taken at me as we all make mistakes.
(20min delay)