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Re: None

Thursday, 02/24/2005 11:51:23 PM

Thursday, February 24, 2005 11:51:23 PM

Post# of 173905
Researcher- SWTX

Hi Re- this is how I look at it. If SWTX gross margins go from 42% for the last qtr of 2004 to 36% for 2005 as the CEO stated, then top line revenues would have to be 16.6% greater in 2005 to make up for that. Since, the CEO said that top line growth will be around 10%, then the bottom line would have to be less in 2005 than 2004 assuming everying else remains the same. Thing is, there are many companies we can find with PE's of 5 or 6 that are growing at 10% or less, but I don't find them to be the ones that make you much money. Wade
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