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Re: Lurker from Mars post# 180763

Saturday, 03/06/2010 1:00:27 PM

Saturday, March 06, 2010 1:00:27 PM

Post# of 202893
Lurker, I am still trying to guestimate what the profit margin from the Matthews deal might actually be. It appears that Matthews will give EI a check every quarter...manufacturing product for EI and then buying it back "wholesale" at a higher price...but how much higher???

Start with the 2000 caskets...Say there is $500 profit margin in those...Does that sound about right? That would be $1m profit and would more than cover the annual cost of the Vatican Observatory license.

I assume urns will produce a smaller profit margin...say maybe $200 for grins. Would 250 Star Trek urns ($50k profit) cover the cost of that license?

Really hard to figure out how much positive cash flow this will actually generate after the licensing and other costs involved. I think if peeps could understand that this deal will put EI into the black for net profit the pps will explode...but "will" it result in net profit? What are your thoughts on this?

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