Replies to post #45764 on Savvy Trades and Investments

[littlefish]

Trent, ZYXI I have no interest since it fails an early common sense test I have. The test is to see if balance sheet and sales, etc make sense and align with what I think is common sense.

While I suppose it's possible, this company increased revs by more than $10 mill YOY and in products supplies. COGS increased a bit over $1 million.... Hmmm, looks like they can sell supplies like batteries for massive massive markups? Maybe I'm missing something.

Hope it continues working for people but I can't square peeps buying something like a replacement supply (like battery) with what looks like a massive markup as middleman.

"Cost of Revenue –product and supply consist primarily of product and supply costs, operations labor and overhead, shipping and depreciation."

So product and supply costs, operations labor and overhead, shipping and depreciation costs is a tiny fraction of what the company charges? Customers will pay massive prices to actual cost for product for stuff like product supplies? They don't even make the replacement batteries (as an example) do they? So are they a middleman charging big markups?

"Product supplies revenue is related to the sale of supplies, typically electrodes and batteries, for our products"

LOL electrodes and batteries, just saw that in the annual. There's no way you'll logically convince ME they get massive margins on replacement diodes and batteries. Apparently they do get massive margins so I'm sure many will be convinced outside me.

I could be wrong of course and it's just my opinion but I can't think of a single long term example of a company that sells what I think are fairly commoditized product supplies with near 90% gross margins. COGS would need to represent a bigger portion of cost for me to even outside consider this company as investable. Sounds silly on the surface to pass on extreme high margins in a products supplies biz but I've seen this kind of thing play out before and end badly. I could always be wrong this time.

Only one person's opinion and I don't follow the company so keep that in mind too.

All in my opinion only.