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researcher59

08/22/05 10:42 AM

#20225 RE: hweb2 #20221

hweb: GMOS Q2 results were fantastic, yet the 1st half results were somewhat lackluster due to a disappointing Q1 with a loss of (.05) versus +.02 the prior year. It seems rising SG&A were to blame. They are probably even more subject to seasonality since their acquisition last year increased motorcycles as a percentage of total sales .... the 10Q states ....

Our two main products - motorcycles and all terrain vehicles ("ATVs") are subject to seasonality. Traditionally, the motorcycle season begins in late February or early March and runs until September. In September/October, the sale of ATVs increases while motorcycle sales decrease.

So I think you're right, stock could get a nice pop on Q3 results, but overall annual EPS may not be so great ....