Friday, March 21, 2014 8:31:11 AM
Talk of CGS and SG&A is something only accountants would love. However, for every holder of STWA stock that is wondering if we really can see our stock price soar, this type of gross profit margin is an enormous stride toward an affirmative yes.
Here is a very simple hypothetical example why:
Assume selling price skid of four AOTs - $4,300,000
Assume cost of goods sold per skid - $1,200,000
Gross margin is (4,300,000 - 1,200,000)/4,300,000 = 72%
If 25 AOT skids of four were ordered the gross profit would be
25 x $4,300,000 = $107,500,000 x .72 = $77,400,000
If gross margins were only 30% or even 50% you can see what a huge difference that would make to gross profit.
At this point I can only guess what net profits would be for the above example, but gross margins this high or higher are very promising. The expense side would include payment of royalties to Temple University, SG&A, and taxes.
To the extent that STWA can bring down the manufacturing costs with a larger production run and/or increase the sales price of the AOT, margins will expand. Taxes probably won't be a problem for awhile as we should have plenty of tax loss carry forwards.
Now all we need is for the Midstream AOT to fulfill it's promising outlook.
As a point of reference the gross profit margin of the S&P 500 is approx. 38%. The net profit margin of the S&P 500 is approx. 8.5%.
Recent QSEP News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/09/2024 06:58:54 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/15/2024 11:57:06 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/10/2024 07:15:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/13/2024 08:39:38 PM
ZenaTech, Inc. (NASDAQ: ZENA) Launchs IQ Nano Drone for Commercial Indoor Use • HALO • Oct 10, 2024 8:09 AM
CBD Life Sciences Inc. (CBDL) Targets Alibaba as the Next Retail Giant for Wholesale Expansion of Top-Selling CBD Products • CBDL • Oct 10, 2024 8:00 AM
Foremost Lithium Announces Option Agreement with Denison on 10 Uranium Projects Spanning over 330,000 Acres in the Athabasca Basin, Saskatchewan • FAT • Oct 10, 2024 5:51 AM
Element79 Gold Corp. Reports Significant Progress in Community Relations and Development Efforts in Chachas, Peru • ELEM • Oct 9, 2024 10:30 AM
Unitronix Corp Launches Share Buyback Initiative • UTRX • Oct 9, 2024 9:10 AM
BASANITE INDUSTRIES, LLC RECEIVES U.S. PATENT FOR ITS BASAFLEX™ BASALT FIBER COMPOSITE REBAR AND METHOD OF MANUFACTURING • BASA • Oct 9, 2024 7:30 AM