Surprise SharpPlot version is 2.43 Paint the paper ===== Border ===== Region ===== X-Axis Ticks ===== X-Axis tickmarks Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 1 1.5 2 3 4 5 6 8 10 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Heading, subheading and footnotes ===== Heading Surprise Subheading Gross Profit Margin vs Portfolio Performance Footnotes Comment Start of Line Chart =========== Points follow ... Line Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 20 22 24 26 28 30 32 34 36 38 40 42 44 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Portfolio Relative Price Index Gross Profit Margin Surprise portfolio

Current relative price to sales is about mid-range in the record of the portfolio.

We have collected second quarter sales data for all of the companies in the Surprise portfolio.The portfolio weighted average sales growth rate is 3.2%. The proportion of portfolio weight accounted for by rising sales growth companies is down to 74.3%, compared to 78.8% last quarter.

Currently, sales growth is low in the record of the Surprise portfolio and lower than last quarter.

Second quarter gross margin data has been collected for all of the companies in the Surprise portfolio.The proportion of total portfolio value accounted for by rising gross profit margin companies is up to 35.9% compared to 26.5% last quarter.

The portfolio is recording a high and falling gross profit margin. Inventories are up, diminishing the chance of a further increase in the gross profit margin. Fixed expenses are low in the record of the portfolio, but falling. The grossprofit margin is falling at a more rapid rate than fixed expenses, producing a deceleration in bottom line profit relative to sales. The portfolio value has been very highly correlated with the direction of the margins. Interest costs are high in the record of the portfolio and falling. That implies that the portfolio has further capability to accelerate earnings relative to sales with lower financing costs. Lower interest costs also diminish financial risk and are often associated with higher share valuation.