DGIX - Dyna Group International Inc (DGIX)

[Knowledge is King]

re DGIX: I liked this one until...


I read the CEO letter. He attributed the slight decline in 2006 earnings to the increase in the price of pewter (the main ingredient in some of their products) from $3.94 to $4.06/lb. Not particularly dramatic, but looking ahead to 2007, he says

"Profits will be under pressure due to the high cost of pewter ($6.50 as of today) and the increase in NFL licensing fees."

If a $.12/lb increase in pewter hurt profits in 2006, imagine what a $2.44/lb increase will do to 2007 profits...