Tuesday, August 14, 2018 8:09:15 PM
Stock Barber, you yourself--in your own words and numbers--just described Howco's margins as small, but they are positive margins. So it is absolutely false to say that sales are meaningless because they lose money with each sale. That is just wrong. If Howco doubled revenues that would not mean they'd double expenses for sales, general and admin. Those two statistics are not directly correlated with each other. In fact, they're inversely correlated on a year over year basis. How do I know? Because in the 10-Q we both read, there's a trailing six month $3.6M reduction year over year in sales, general, and admin costs, while revenues were slightly down but gross profits were up 10% for that time period.
Please, I challenge you to argue this fact with me.
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