CST 7.23% 7.7¢ castile resources ltd

Patrick,you're off topic again. The discussion was really only...

  1. 987 Posts.
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    Patrick,you're off topic again. The discussion was really only about malta's confusion of gross profit with nett profit, unfortunately for shareholders there is a world of difference.

    As to the other points you have now raised, yes gross profit may improve to say 60% due to economies of scale in the manufacturing process.
    Ditto net profit will improve as the other expenses of salaries, marketing, etc , should stay relatively static now but sales will hopefully now accelarate.

    Regarding exchange rates, I think you will find that to a large degree CST will have a natural hedge against this problem. Although (hopefully) a substantial amount of sales will be made in the US in weak (and getting weaker) US$ a good proportion of sales will also be made in other stronger currency zones such as Europe and Asia. Actually the currency differences could turn in CSTs favour in that they may be able to switch a lot of their manufacturing to the US manufacturer, product that could be exported to Europe and Asia.
 
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