Running 50% margins in an industry with margins between 10% and 20% doesn't sound scammy at all. Of course you can still make money on it by selling to the greater fool.
SIRC - thank you guys for bringing this up. I keep scratching my head on this. Something has to be wrong here for the stock to be behaving like this. I was reading through the filings and I just get a really bad feeling on this one, not to mention the obvious red flags.