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Re: rookinvestor post# 22141

Tuesday, 09/19/2006 7:19:59 PM

Tuesday, September 19, 2006 7:19:59 PM

Post# of 81582
Rook I had missed Lucy's original post (22086) the one that outlines some Capstone patents. I also just finally had time to listen to the interview on MN1, it was a 100% acquisition so I suppose that IF all proceeds from those patents + sales profits go straight to China Direct, it's theoretically possible that margins be that high. BUT he said 50-55% is the profit margin typically realized for Capstone, which doesn't jive with CHDT's own PR:

"For FY2005 (unaudited), Capstone had gross sales of $2.167 million, gross profit of $661,489 and net income of $92,535 after a one-time tax deferral adjustment of ($209,940)")

There was no mention of any numbers when it comes to upcoming Capstone-related revenue such as quarterly etc. for CHDT which I found a bit odd. Current retailer distribution agreements are impressive, but 2 mil gross a year is not.

Beam me up $cotty...
Gig