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Thursday, 08/14/2008 9:43:07 AM

Thursday, August 14, 2008 9:43:07 AM

Post# of 162848
Thought I would give this a quick mention.

As to profit margins, you might want to take a look at the language they are using.

From the latest PR

The improvement for the month of July follows the disclosure that sales of Aero Exhaust products for the fourth fiscal quarter of 2008 were 22% higher than the same period last year with a gross profit margin up to 39% for the period, a significant improvement over the results from the previous fiscal quarter.

http://biz.yahoo.com/iw/080812/0424197.html

Earlier PR

Gross profit margin is up to 39%, a significant improvement over the results from the previous fiscal quarter.

http://biz.yahoo.com/iw/080812/0424197.html

Ever see the big sale announcement where they say "Everything in the store is marked down with savings UP TO 70%!" I am afraid that is what we are dealing with here. Why? Because later on in the initial PR they have a disclaimer.

"The 39% gross profit margin represents a combination of retail, dealer, and warehouse distributor purchases," Mr. Hunsaker said."

I am not going to try and figure what was left out if anything, what I am saying is you should be very wary when a penny stock chooses to use the term "up to".

So when the audited comes out, don't be surprised if the 39% suddenly disappears.

Derb


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