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ChromaDex Corporation Message Board

  • investora2z investora2z Feb 23, 2013 9:06 AM Flag

    Some more thoughts

    It seems that CDXC stock has resumed its up trend. Minor glitches apart, the next stop would be $0.90 and $1.25 (52W high). Once this is crossed, $2 and beyond are possible. This majorly depends on the results over the next few quarters. The market is growing at an average compounded annual rate of around 7% and the size is also huge. With experience in the industry, it is not too difficult for Chromadex to get its share of the pie and also increase its size over the years. Of course, the company has to keep its marketing efforts on full throttle and also sharpen its market intelligence skills. Future development also depends on creation or upgradation of more R&D facilities / clinics etc. All this requires funding and CDXC has been professionally fortunate to get the money from cash flow and equity funding over the years. The insiders who hold more than 44% of the stock have been regular contributors and it is for this reason that the debt on books is very low. This reflects the confidence of the owner managers in the prospects of products / technologies where CDXC is operating. Future expansion is also likely to be based on this funding route. To list on major exchanges, its would be great if some sort of consolidation can be explored. That may enable institutional investors to participate in the growth story of the company. The fourth quarter results are going to be declared soon and it is likely that the growth trend continues. What would be interesting to see is whether the company manages to increase its gross profit from $1.24M in Q3 or not. The good response to BluScience is expected to continue but hopefully, the selling / marketing expenses would come down. At the time of launch, the expenses were obviously very high which dented the margins in the last quarter and spoiled the party.

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    • Quite creative analysis, but more fiction than fact unfortunately.

      To be succinct, I will only address the glaring issues.

      1. Your projections for the price increase are based upon nothing but speculation. You offer no technical nor fundamental rationale in support thereof.

      2. The market for what is growing? Certainly not for the products this company makes.

      3. You describe their marketing as "full throttle" I have seen absolutely no evidence that they even have a marketing program.
      Can you enlighten me here?

      4. You are correct here. Funding is required. Perhaps the sale of their product line will generate funding, but only if the sale is genuine. It does not appear to be anything but a scam at this point.

      5. The Insiders you mention are not exactly a charitable organisation. If they contributed it is only in the form of debt.

      6. The prospect of this company qualifying to list on any other exchange is next to zero.

      7. The 4th quarter results will likely show more losses. Nothing has happened since the last report to give one cause to believe otherwise. Gross profit is meaningless. Net profit is the only measure worth considering. We know how the company did by this guage.

      8. The response to Bluescience has been anything but good. It has failed in all of the retail outlets that took it on. The margins were not dented, they were crushed, as in, there were none.

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