Value Microcaps Motherboard

[abh3vt]

Researcher, MVK doesn't benefit from rising steel prices as it is a cost input for them. The fact that earnings have risen has been their ability to pass on these price increases:


Steel Costs of Our Products
The cost of steel component historically has represented approximately 55% to 65% of our costs of goods sold. Accordingly, a key driver of our profitability is the cost of steel and our ability to pass that cost to our customers. Because we value our inventory using an average cost methodology, the steel component of our cost of goods sold lags steel purchase price changes by approximately three to four months. The average cost of steel in our cost of goods sold for the first quarter of 2005 was approximately $750 per ton compared to an average of approximately $606 per ton in the first quarter of 2006.
-Q1 06 10Q
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What's the current price of steel/ton? The WSJ article I quoted earlier said it was $550/metric ton, but that doesn't appear to be the same measure that MVK uses in it Q.