Did you notice the growing stockpile of inventory on AYSI's balance sheet?
Inventories up 300-400% year over year last Q, growing every single Q by nightmarish amounts. The 2nd mill looks like an extra COST burden to me and little more....
"Inventories
Our inventories are recorded at the lower of cost or net realizable market, with cost based on a first-in, first-out basis. We periodically assess this inventory for obsolescence and potential excess by reducing the difference between our cost and the estimated market value of the inventory based on assumptions about future demand and historical sales patterns. Our inventories consist of materials and products that are subject to technological obsolescence and competitive market conditions. If market conditions or future demand are less favorable than our current expectations, additional inventory write downs or reserves may be required, and that could have an adverse effect on our reported results in the period the adjustments are made."
The good news is that perhaps the mills being shut down for a month is a good thing. They are obviously producing far more than they can sell.
