Replies to post #18270 on Expo Holdings Inc. (EXPH)

[ORCA]

Holding several million shares.I will wait to see if we get some Walmart or Lowe's big revenue contract before adding more shares.

[joenatural]

So what you're really saying without saying it is that you sold your stock yesterday and you'd enjoy buying them back at lower prices. LOL. How clever of you to use a sample revenue number of $1 million in your figures when in fact that $3 million is on the low end of guidance. Guess I can't blame you, as even I would like to buy the shares back that I sold at .0011 on Friday for even lower prices, although I'll refrain from using your tactics in attempting to achieve this. You own several million shares ? Yeah ...... sure you do. LOL.

[Ordinary Guy]

10% net profit in manufacturing is a strong number. On 15 mil, which is what I think EXPH will do with the new Walmart and Lowes contracts, that is 1.5 mil NET profit. I will say it again, NET profit. That is after all the salaries are paid, taxes are paid. NET NET NET. I would bet the other company your are touting can't claim 10% Net. I know retail margins, and retail margins run 3-5% at best. This is a growing company who's day is about to come and most can't stand it because it will mean they were wrong. And guys like me and Gamb, who are not penny day traders will have been right. By the way, this is how I know we will be fine. When the penny day traders don't like it, it more than likely means it is a good long term investment. EXPH is doing all the things that a growing company should be doing, and not doing the things that a P & D would be going to satisfy flippers. IMO

[DD-214]

8-10% Net Margin is excellent for EXPH.. and as you see, higher than both Fortune 500 and SP 500 average..

here's a good link, Entrepreneurial Finance By Steven Rogers (page 140)

http://books.google.com/books?id=6P9qAAZjFIsC&pg=PA140&lpg=PA140&dq=average+fortune+500++net+margins&source=bl&ots=g_GhApHMrw&sig=cwdyepFDQor-INeuh68pc4CGfeU&hl=en&ei=nCguSrdXoby0A6KTlbAK&sa=X&oi=book_result&ct=result&resnum=2

below are excerpts taken from other published articles..

1. The Business of IT (IT from the CFO's point of view)
Hank Marquis, Practice Leader, Business Service Management, Global Knowledge, Inc

Here's why: the average Fortune 500 company has a 6.7% net profit margin. This means that for every dollar spent, the company makes just $0.067 - that's just under 7 cents - in profit. Ask yourself how many dollars you have to earn to net $17,500,000 in profit (at 6.7% profit margin).

2. "If you look at Fortune 500 companies in many verticals, 3 to 6 % Profits after Taxes is a great number!"

3. According to Applegate's numbers, the after-tax operating profit margin for all of the companies in the S&P 500 was nearly 7%

4. In general, net margins of 5 percent or better are considered very good. According to Hussman Funds,

5. The average net profit margin for the S&P Energy sector, according to figures from Thomson Baseline, is 9.7%. The average for the S&P 500 is 8.5%. So yes, energy companies are more profitable than many others.

6. Grantham also pays attention to profit margins. The long-term average net-profit margin for S&P 500 companies is 5.6%. Currently, Grantham thinks profit margins are way too high. As the recession deepens, he believes margins will fall much lower — back to their historical averages. That’s a negative for stocks. But because of the bear market, P/Es have fallen so far that he sees stocks as good buys now.