Replies to post #1713 on Innovative Designs Inc (IVDN)

[just_an_ant]

If dropping a couple product lines you have to consider the 'write-down reserves' which happened in 4th quarter.

Took the following writedowns off the 2010 Inventory value ($936k)

The Company has booked a reserve against this inventory at October 31, 2010 of approximately $126,000. Based on the company’s review of inventory, the Company increased the reserve to $138,811.

So $139k off of $936k = $797k (6/30/10 core inventory adjusted for reserve).

Value at 6/30/11 - $790k (core inventory - obviously deposits isn't for swimwear or hunting gear, but the Artic Armor and new product lines)

So basically the same valuation, but 'more' stuff..factoring in the discounted product lines and the 'new' stuff.

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He is not 'cutting' back on his organic business. He is cutting back on what 'doesn't' sell well....and expanding on demand/requests that likely will sell well (aka..new related product lines)

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Sales growth as percentage may not be what it was 2010 vs 2009, but based on inventory levels it should be around last year if not little more imo.

Nothing wrong with being 'specific' and keeping the core business strong and focused (aka Artic Armor) - even if seasonal. The expansion in to HouseWrap could start paying dividends next Summer and provide a more then one-dimensional look to the company.