OTCPK:SPLID - Post by User
Comment by
AFGKhanon Dec 10, 2019 1:07pm
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Post# 30440233
RE:RE:Lost 1 but gained 6
RE:RE:Lost 1 but gained 6 Well by looking at the financials, I believe they had no other option than to diversify. Relying simply on Plus would've never made them profitable. Sales were definately increasing but the margins weren`t following as drastically as sale. The latest were 23% and we all know that`s not enough to keep the company sustainable. They also probably came to realisation that Plus could not offer more growth on its own and had reached a peak. By going after distribution deals that offer growth at lower margins is the wise decision here. I feel that the Asia deal is one those outsourced deal they love because the cost will most likely be lower. Then again, this is all speculation. One thing for sure is, I would not underestimate the diversification they are going for. And for some reason, I still believe in the GT Deal. They are growing it in the meantime and the FU family still seems to be part of the NH family. Let`s hope it remains this way and the numbers enter our books ASAP.