Goodfellow Update

Goodfellow posted a good first quarter. Revenue was down slightly, but management reduced expenses even more, improving margins substantially, from 0.9% net in Q12009 to 1.9% in Q12010. Quarterly earnings per share doubled from 12 cents to 24 cents. Cashflow from operations was positive before changes in non-cash working capital, but substantially negative after. Overall, including investing cashflows, the company used $8.4 million dollars, financed by bank debt. However, this was largely due to a seasonal increase in inventory.

Goodfellow remains good value at its current price.