Thanks Rick. I just have a good feeling about PLNI as a company and their direction. I will be glad when their caught up and we get financials sooner after the quarter ends and PLNI won't have all of this payout for historical audits to become current. As I recall, JT and Howe both mentioned the huge outlay for legal and accounting costs, at least one of them said it.
I wish PLNI had an auditor who could also present the statements without non-cash expenses (Goodwill, etc) and one time unusual expenses (audit catch-up, acquisition costs, etc) like the big boys do to give us a better picture of what they are going to do when these costs no longer drag the P&L down. Right now, were strictly GAAP and we have to assume a lot to try and get to the real profit. That's why the break even could be well below $3 million.
Another thing that could help increase the profit (reduce the loss right now) could be economies of scale. With the new machines and additional output, they are obviously using more material. As that happens, they should be in a better position to negotiate better prices on their raw materials (if they have a good buyer).
A very old philosophy in business says that you don't make your money selling, you make it buying. I've found this to be very true when companies I have been with have been required to improve profits. The market will only give you so much. You have to do what you do better and cheaper than your competitor and still maintain your quality and service. Thus, I think that JT was smart in saying that PLNI was going to stick to what they do best.
Enough rambling. Thanks again Rick.
Just my opinions.
