@jklotto A very good point. When coupled with the forecast...

@jklotto
A very good point. When coupled with the forecast increase in manufacturing and operating costs for the next Qtr $4.017million (up from $3.149 million) it suggests a significantly improving position.

I'm actually more concerned about the commentary within the report. There is a disconnect between the statement that receipts were down in part due to "seasonal variation in the bedding industry that has since resumed normal shipment volumes and frequency" and later in the report saying the mattress industry sales fall off in winter months and that this "translates into 10-20% slowdown in the fall months" forewarning of a headwind next quarter. This inconsistency or an explanation of it in report bothers me. They say they are selling at previous levels but warn it could drop by 10-20%

I also don't much like the 4 bullet points about "near-term customers". I'd much prefer they say nothing until they had a signed contract in their hand at which point they announce it.

My view is a mixed report.

• Great that it's now CFP,
• Great that costs are being trimmed ( begs the question why the previous management let it continue)
• Not so good news flat revenue. This needs a much better explanation tomorrow. If it doesn't happen I think we will see the SP have a fair dip
• Inconsistency in the messaging

Suspect we will see some selling tomorrow but not a bloodbath.

As ever, All my opinion. DYOR etc etc (you know the drill)

Lumpy