Split, why don't you admit that the company announcements have caused confusion?
Thadius and Siameseparrot both believe that the buyer is paying for the international shipping costs, however, the company has informed me that it is responsible for these costs. Why then would the company quote future operating profit based on FOB revenue and FOB costs when really it should have quoted CFR North China revenue and CFR North China costs?
All I can think is that under the terms of the sales agreement entered into with OMS the company has negotiated a deal in the first two years where sales are on an FOB basis and it doesn't benefit from any reduction in shipping costs but, instead, the buyer does.
If this is the case then why doesn't the company just set the record straight and clear up the confusion.
Stagman
TRF Price at posting:
47.0¢ Sentiment: None Disclosure: Held