[PLNI]: What is the Real Production Capacity of Pro Mold, Inc.?
1. In a press release issued by PLNI about the acquisition of Pro Mold, Inc. dated Dec. 9, 2005, PLNI states that:
"Pro Mold, Inc. is currently profitable and generates revenues of approximately $5 million annually."
2. In a separate press release issued by PLNI dated Nov. 9, 2005 regarding the Pro Mold, Inc. production capacity, PLNI states that:
"The new production facility allows for $20 million in production and sales annually at present production capacity..."
3. By reviewing the public statements in press releases made by PLNI about Pro Mold, Inc. and exhibited in paragraphs #2 and #3 above, it can be concluded that Pro Mold revenues of about $5 million per year use only about one-fourth of the Pro Mold production capacity. However, in the press release issued by PLNI on Oct. 26, 2005 (http://snipurl.com/kwas), the company states that:
"Increased Demand for ProMold, Inc. Products Leads to $1 Million Backlog of Orders"
"...the company will adopt a 6 day per week, 24 hour per day production cycle to meet increased demand..."
4. By reviewing the three paragraphs above one has to ask the question: Why would a company that is operating at only one-fourth of its capacity of $20 million per year have to adopt a 6 day per week, 24 hour per day production cycle in order to satisfy a mere $1 million backlog of orders? Is this because PLNI has been issuing false statements regarding the true capacity of Pro Mold, Inc? Is this because PLNI has been issuing false statements regarding the true revenues of Pro Mold, Inc.? How about the increased demand for Pro Mold products?
Something just does not make sense here.