Dean Orrico Spinrite Income Fund SNF.UN-T BUY Apr 01, 2005

This one was very strong out of the gate but since then has dropped back. Their business is in yarn and had focused on the higher end materials. It was more of a fad and a lot of inventory was bought last year. Although the demand was still there, there is still a glut of inventory. Recently increased their distributions and are probably paying for it right now.

This is a unique business in yarns. Has guided for lower sales. The were some issues with weather and inventory build would like to see how the inventory issue plays out.

Was brought public at the peak of it's earnings. They produce fancy yarn which has a large margin compared to other yarns. But fancy yarn turn out to be a fad so earnings and cash flow has dropped substantially since then.

The trends in their business do not look to be turning around anytime soon. They are in a precarious position. Things could get worse before they get better.