Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Big difference, but the market surely knows about these. I had modeled it some time ago, but if price declines are not compensated by volume increase to have a sufficient increase in total price shipping, then royalties may not be that dramatic. Remember also that the breakeven (sans royalties) for SNDK shipping business is around $160/$180 MM at profits margins in the 33% range, if these decline to 20% because of lower pricing, breakeven (sans royalties) gets up to $300 MM or so, and the street may be looking at these profit margins rather than the loadless royalties (I think these should easily exceed $65 MM this quarter).