Optec International Inc (OPTI)

[CED Brian]

This is a very nice summary... thank you for posting it. I see a red flag... $2B sale, $.1B "revenues" which typically is gross profit not net profit, that's only 5% GP which isn't much. How did he manage a line of credit with a PPE manufacturer for $1.9B and what's that costing him per month? I work for a company with 700+ locations and multi-billion dollar annual B2B sales, we figure the cost of cash at 1.2% monthly between when we pay our invoice and when we get paid. Assuming he somehow got a better deal than that, maybe 1%, then he has to receive the product, he has to store it, has to pay for it, has to deliver it, then has to wait to be paid. That 5% can be eaten up very quickly. As a distributor I sell lighting jobs on a regular basis that are $200,000... if we can ship it direct we might go as low as 5% GP but it's rare, we typically won't touch a 5% direct-ship order because there's no profit in it. If it goes through our warehouse we won't touch it for less than 10%, which we figure as our break-even number. It's not about the dollar amount, it's about cost as a percentage of the order. If you're delivering watermelons to Walmart and you're barely breaking even with one truck, you're barely breaking even with twenty trucks, even with two hundred trucks. Unless the $100M is net profit, which prior to delivery can be only an estimate, I just don't believe this is a real transaction.