Where do you buy LBIX products? I live in the Pacific NW and I still see PureBlue and PureBlack at Whole Foods and New Seasons Market. However, it does look like they removed the smaller bottled (in the refrigerated section) of PureBlue, PureRed, and PureBlack.
My guess is that 90+% of sales are still in Canada?
.....keep making money and the book value/share will continue to increase. A steal at $4.53 , assuming they don't lose money in Q3 and Q4.
QUESTION: Why sell a company with no debt that trades at book value and makes money?
ANSWER: I don't want to insult anyone so I will refrain.
Totally false. Per their 20F filing, revenue recognition is when the product is delivered, not when it is paid for:
Revenue on sales of products is recognized when the products are delivered
and title transfers to customers. Revenues from the provision of manufacturing,
packaging or other services are recognized when the services are performed
and collection of related receivables is reasonably assured. The Company
records shipping and handling revenue as a component of sales revenue, and
shipping and handling costs are included in the cost of sales.
I calculate book value at ~ $4.50/share.
So, we have a company trading below book value with a low PE and no debt.
Sentiment: Strong Buy
That didn't print correctly......I think stock will go to $7+ if revs up and earnings greater than 0.40/share. If earnings less than 0.30/share and revs flat stock will go down.
If you're looking for an opinion, here's mine:
If Q2 revs flat or down and earnings 0.30 and 0.40 with strong margins, stock will rally to $7+.
It's all guesswork.....we'll know by Oct 15th.
I'm nibbling and buying more at these levels. If Q2 beats by as much or more as Q1 the seller(s) will once again be wrong. Crazy how much overhang there is in this stock.
We should see Q2 earnings this week or next. Key considerations:
1) Q2 is usually their best due to weather. Most products are sold in Canada and it's generally cold for 6+ months. Q2 represents the May 31-Aug 31 period.
2) The big wildcard is branded products, especially Happy Water. If Happy Water has strong sales this stock could explode higher. Water is a high margin product and given the Q1 margin improvements I suspect that Happy Water is trending well.
Hopefully we'll see growing sales and another build in cash & securities.
Sentiment: Strong Buy