Value Microcaps Motherboard

[abh3vt]

Marvel, check out this passage in SVLF's 10Q:

"Cost of Sales
Cost of sales as a percentage of Vacation Interval sales decreased to 16.1% during the second quarter of 2005 versus 19.6% for the same period of 2004 primarily due to the Company selling a much higher percentage of its lower cost inventory in the second quarter of 2005 versus selling primarily its higher cost inventory during the same period of 2004. Higher average sales prices during the second quarter of 2005 compared to the second quarter of 2004 also contributed to the reduction in cost of sales as a percentage of Vacation Interval sales. The $1.3 million decrease in cost of sales in the second quarter of 2005 compared to the second quarter of 2004 is due to the inventory costing. Cost of sales as a percentage of Vacation Interval sales is expected to increase in future periods as the Company continues to deplete its inventory of low-cost Vacation Intervals and shifts its sales mix to more recently constructed units, which were built at higher average costs.
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read the last two sentences.....