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Mannatech, Incorporated Message Board

  • investora2z investora2z Mar 26, 2013 7:38 AM Flag

    Q4'12 Results

    MTEX is up substantially over its 52 week low of $3.35 in May 2012 (~95% growth), and is trading above its short term averages. The 200 DMA and the 50 DMA are pretty close to each other at $5.90 and $5.94 respectively. The 10 day volume is higher (4.2K) compared with the 3 month average of 2.2K indicating some momentum. In fact, the last few trading sessions have shown even higher volumes indicating that there may be some optimism building around the stock. The reason could be that the company was able to turn profitable in the last quarter of 2012. For the full year also, the losses reduced significantly. The sales, however, declined substantially. The sales went down from $200.7 million in 2011 to $173.4 million in 2012, a decline of 13.6%. The net loss for full year declined from $20.7 million to $1.4 million mainly due to the better performance in the second half of the year. Success of the global launch of its product NutriVerus contributed to a part of this success. With the world economy expected to limp back to normal, markets for such products is likely to grow. There have been success stories in the nutritional supplement market like MusclePharm (MSLP) and Chromadex (CDXC), who have succeeded with their products. MTEX needs to focus more on development and acquisition of newer, more unique products so that the sales can get a boost. Of course, the efforts on the margins front should continue, and cost efficiency of the company should be continuously improved. If both the sales and the margins improve over 2013, the long term downtrend may end, and there may be reasonable appreciation in the stock. Due the low current price, even modest dividends may result in high yields. The next few quarters will be interesting for the company.

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