APT MotoVox Group Inc. (MTVX)

[Kool Aid Man]

I stand by my analysis

Entrepreneur Magazine reports

"The Ethics of Markup"

Even though there is no hard and fast rule for pricing merchandise, most retailers use a 50 percent markup, known in the trade as keystone. What this means, in plain language, is doubling your cost to establish the retail price. Because markup is figured as a percentage of the sales price, doubling the cost means a 50 percent markup. For example, if your cost on an item is $1, your selling price will be $2. Fifty percent of $2 is $1, which is your markup. http://www.entrepreneur.com/article/193986

Kmart retails the most popular Motovox Mini Bike for $380. Based on the above (as I asserted earlier) APT's cut would be $190 --out of which they have to deduct ALL costs of production, transportation and overhead. This is called a "reasonable assumption" --the sort of thing people do every day in the investing world.

But let's say I'm off by 100% and their bottom line profit is actually DOUBLE the $25 per unit I predicted.

4,000 units x $50 profit=$200k
20,0000 units x $50= $1 million for the year

This would mean APT would be able to bring a mini bike to market for a total cost of $140 each in order to realize $50 in net profit.

APT has already proven they can generate plenty of sales and STILL skate right to the edge of bankruptcy. So what, if anything, is different this time?