Zeev's Turnips Patch-No Politics (ZEEV)

[Kirk]

SWTX

They had a huge decline in revenue when auto sales are at record levels.

Southwall's automotive product sales for the fourth quarter were $4.8 million, down from $9.6 million for the fourth quarter of 2001.

For the fiscal year ended December 31, 2002, Southwall recorded net revenues of $68.8 million, a decline of $14.2 million from the $83.0 million reported for 2001. The company attributed the annual revenue decrease principally to a significant decline in sales of its solar control film products for the automotive industry in Europe. Sales of Southwall's anti-reflective film for the electronic display markets and solar control film for the residential and commercial architectural glass markets were also down slightly from 2001 to 2002.


It seems dirt cheap on many valuation metrics, but if auto sales are now in a decline... and how many new office buildings are going to be built?

Would it not make more sense to wait for revenues to stabilize?

Kirk