Wednesday, May 24, 2006

Royal Group Continues Losses

Royal Group (NYSE:RYG) continues to report losses despite marginal increases in revenues. They cite declining profit margins and continuing regulatory problems. Everyone seems to be investigating them and that does take up a lot of management time. Lots of chickens waiting to come home and roost. They cannot blame declining exchange rates as the major operating problem. If that is the case then they are simply no longer viable. Investigations will one day be over but will the whale be able to leave the beach? Probably not!