profit, page-3

I am with BigRed

We may go pretty close to a CF neutral quarter in Q2. It really depends on the spending for inventory for Q3.

In the end, its the entire 2008 year that counts, and we know that the 2nd half of the year accounts for at least 70% of sales.

When BRT acquired the 4 businesses they mentioned that historic profit was around $1-$1.5m in total.

Now we know they have spent a few months integrating these business (and not focusing as much on sales), and we also know that input costs have gone up (both labour and materials/transportation).

So putting those together I would imagine that historic profitability will be less than what they had anticipated.

Of course, we are only in May so its too early to tell (thats why BRT came out a month ago and said they cant forecast profits).

But if they continue to gain traction with the marshmallow product line, which will be one of the highest margin products on their books, then some significant profits are possible for 2008 IMO.