If you need to build a house, don’t call me or @Jk1598. We’re...

If you need to build a house, don’t call me or @Jk1598. We’re finance wonks by profession. Soft hands. Big Brains. It would be hazardous.

By the same measure, taking investment analysis seriously from you is hazardous.

You either didn’t read, or didn’t endeavor to understand anything I wrote (and sourced and annotated) for your benefit above.

Normally inventory is an asset.

This inventory has now been moved from assets to expenses. $20 million worth. And $50 odd million of other mistakes. It is as much of an “asset” as an airport cup of coffee on an expense account business trip is an asset. It is not.

The inventory is now gone from the books. Along with all the other mistakes from last year.

EXL EXPENSED the inventory. That expense came from shareholder equity, and now it is gone. It will not appear in the next financial report.

It no longer exists on paper. Next quarter, they will sell it anyway, without attributing the cost of manufacturing against the revenues. So you will just see revenues.

The revenues will “appear” bigger than they really are, because you have already lost forever the money it cost to produce it.

So the next quarterly report will be artificially inflated. This is manipulation meant to fool people. Like you.

Directors have a fiduciary responsibility to not to lie to investors or the market. They have fired workers, that cost your money to train. Now they are gone elsewhere.

They paid $11 million of your money for a production facility that they will never use, because they will be insolvent in a few weeks.

Remember, you don’t have to listen to guys like me and JK.

But you DO have to trade against us.

If I need a house, I’ll call a construction guy. And then I’ll take the money I paid him for the house back from him in the markets.