Coca-Cola Leading Brands Inc. (LBIX) - Beverage Buyout Talks make sense. The whirlwind of recent beverage buyouts may continue with net income on the rise at Leading Brands. It's important to note that Leading Brands is a relatively safe investment and over the relatively short term should rise to over $10 a share. Buying sooner than later makes perfect sense. PepsiCo and Coca-Cola have bought out smaller beverage companies in the past.
With health scares sparking a number of investigations at the state and federal level into the energy drink's role in several fatalities in the beverage industry expansion into healthier beverages makes perfect sense.
Private-equity firms backing healthy beverage brands are pushing the spurt of strategic buyers. They point to the needs for new brands with a healthy appeal. "They're all trying to rejigger their product portfolios to more healthy products," said Mike Chase, a managing director at Health Business Partners, a boutique investment bank in Warwick, R.I.
Acquiring a small company that can be plugged into a larger distribution pipeline is a better bet than developing a brand from scratch.
"Pepsi and Coke don't make acquisitions of these beverage companies because they can," said Scott Van Winkle, a managing director at investment bank Canaccord Adams Inc. "They see the need."
That can pay off handsomely for buyout firms, as large drink companies can pay high multiples for smaller drink brands since sales will likely spike after the acquisition once the brand is plugged into a larger distribution network.
Look for LBIX Shares to be one of the best performing stocks for the remainder of 2013/2014.
Looks like LBIX will be breaking $6 and closing high today. I will call a close over $6... you may get your $7 near the close or after hours. RCON needs to break over $1,86 and it may grab some volume watching that too.
risot, LBIX has more of that I am sure. One the day I won't call it. Long term well you have my opinion. RCON is my next pic to breakout here is why:
Key date for RCON shareholders: (August 13th 2013)
Why August 13th is important: August 13th is the approximate time of the next quarterly report release (exactly one quarter from the May 13 release). It should be a good one and this is an excerpt from the last report:
Recon's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. (This is a signal of significant strength within the corporation).
CEO of Recon Mr. Yin Shenping stated: "The temporary revenue decline in the third quarter was mainly due to timing issues related to current project completion status, rather than any changes in business fundamentals. As we complete outstanding projects, and assuming we obtain new contracts for our fracturing services and furnace business, we anticipate the coming quarters will reflect what we believe are positive results for our company."
Aug. 13th would provide an opportunity to announce new contracts with either Sinopec who has made good use of the Baker Hughes Frac-Point (TM) Syestem RCON introduced to them or CNPC who may be looking to expand the contract awarded in Turkmenistan for PCS & SIS Systems.
Shares Outstanding: 3.95M, Float: 1.88M, % Held by Insiders: 54.05%
Recon's last contract announcement released late in the day on March 19th 2012 (a Monday) and caused shares to spiked to $4.58 from a close of .84 cents a share on March 16th 2012 (a Friday). The late Monday release caused the spike Tuesday March 20th 2012 for a gain of $3.74 a share. Today that would translate to a share price of roughly $6.00
The expectation here is for Recon Technology to Outperform the market for the remainder of 2013. Using due diligence is always a good idea with any stock however today's prices look like a safe entry point
Extra info: During Q1 2013 the Company repurchased an additional 18,996 shares of its common stock at an average price of USD$4.56 per share, pursuant to its share repurchase program. As at May 31, 2013 the Company had outstanding 2,942,349 common shares. The Company's Board of Directors has increased the amount of the repurchase program by an additional USD$500,000 as it believes that the Company's common shares remain undervalued.
This with: Gross profit margin for the quarter was 47.0% representing a significant increase over the same quarter of last year.
From the Milwaukee Private Wealth Management, Inc.: "It becomes very clear that China represents an unbelievably lucrative market for LBIX"
Swing trade for at least $10 is conservative as the float is small and getting smaller as profits rise. Best stock considering reward vs risk on the NASDAQ.
Use due diligence however once done you will not as the next earnings nears volume should increase along with the share price. Next Report should really be explosive this report was the one that early investors would be wise to notice.