OTCPK:EUCTF - Post by User
Comment by
newdaydawningon Sep 03, 2017 4:23pm
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Post# 26652358
RE:RE:Strong growth in gross margins
RE:RE:Strong growth in gross marginsDwelling on past performance is largely irrelevant at this point. What remains relevant is the top-line and gross-profit growth that EUO turned in during Q2. In my view, Q2 could foreshadow a strong half.
kidl2 wrote: NDD: The argument of using increasing gross margins as a sign of good things to come is simply wrong in EUO’s case.
EUO always had terrific gross margins, actually much higher than Q2, thanks to GFI and the low product cost of the actual marker and yet EUO managed to continuously lose money thanks to its ridiculously high overhead. This was by design as it benefitted the insiders while shareholders never got anything out of these fat gross margins.
It’s not wise to hang your hat on what a company promises or tries to promote without comparing such promises to past performance.