RE: fire in the hole! sssssssssssssss......Nordex has posted their 2005 results on sedar. Did anyone else find the Profit Sharing Plan a little bizarre ? It's worth a look. As I see it, for 2006 & 2007, 50% of pre-tax profits above $163,500 go to key positions, employees and directors !!!! That's right - 50% of pre-tax profits !!!!
In my opinion this is ludicrous, especially from the timing perspective. Nordex has large tax losses available that expire in 2006, 2007. Instead of having earnings (hopefully) that are tax free due to the tax loss carryforwards, they are expensing 50% of profits above the threshold on a newly created PSP ?? I can see where the Profit Sharing Plan is expensed(pre-tax)reducing profits in half and having much of the tax losses expire worthless in 2006 and 2007. Absolutely beyond reason !!
What financial engineering brainiac dreamed up this nightmare ??
Quality of management ??
In shock,
Sizzler