I saw the same thing last night when I read the report. It's the same kind of report that caused PEIX to rise over the months about 80% before the stock finally skyrocketed. The ability to make large payments against principal debt is a watershed, and may bode well going forward. 2014 is shaping up to be a very good year, I would think.
It's highly unlikely that Wells has sold over the last two and a half months, given that the stock has risen steadily since January 2, closing today over 17% higher.
You are confusing customer info with insider info. Perhaps I should be thrown in jail for various failings, I don't know, but not insider info. I'm not an insider, for one thing. Since the company did not announce the launch of the new product, there is no particular reason to announce the wrong spoon problem, especially a problem that can be easily fixed in just a few weeks. Companies are normally reluctant to announce their failings anyway. You have it backwards about sales causing customers to wait for them. Customers wait for sales to buy because they regard supplements as expensive items, not because Cyanotech in particular is having a sale. The customers can and do buy store-brand astaxanthin when the stores are having sales of their brands. To compete with the stores, which are having sales periodically, Cyanotech must have its sales too, or very soon its sales of the product would plummet and it would lose shelf-space to the stores or other new brands coming in with their sales. By having these sales, Cyanotech prevents other brands from coming in and taking shelf-space from it. Shelf space is limited, and the competition is cut-throat. There is no known relationship between a dietary-supplement company having many news announcements and its success as an enterprise. A lot of successful investing is just sitting back and allowing time to pass. Some times it takes months or years for things to bear fruit. I had that experience with NBTY, which seldom made announcements, and it was a lot bigger company and the sixth fastest growing stock (rising about 16,000 percent) in the whole stock market between 1990-1998. Yet there were times, months on end, when it seemed to sit forever in the $5's and $6's.
The company has pulled Green Complete from its website, and it won't be back up for a few weeks because they packaged a wrong-sized scoop with the powder, and so must replace the wrong-size with the right-sized scoop. Nothing wrong with the product, thank goodness, just an embarrassing screw-up.
I've been looking into this a bit more, and have come to think that this product is not at this stage intended to be something that will add to the bottom line much if at all this year. It's more like an experiment or something. For one thing, the company didn't announce it in a press release, but only brought it to customer attention through emails connected with its website, which appears to be the only place from which this spirulina-based product is being advertised or sold. Only one or two blogs have even mentioned it, as far as I can tell. This cautious attempt to broaden their product base is probably a good thing, allowing them to gauge customer response against management's own evaluation of the product before making a larger commitment to it.
Maintenance Mechanic, Tablet Press Operator, Electrician/Maintenance Mechanic, and Culture Technician. It would appear that Cyanotech is gearing-up for the use of its new supercritical carbon-dioxide extraction equipment which must have arrived by now. This equipment will make Cyanotech fully vertically integrated in the manufacture of astaxanthin, and on through its online store.
I'm no expert, but logically that would seem to be one factor besides any manufacturing limitations. Spirulina is consumed in about 75 countries, and is grown all over the world in places like India, France, and California. France alone has something like 100 farms making spirulina that is usually sold locally, I believe. Spirulina is manufactured on many small and medium sized farms because the process is very involved and the product about 10 times more expensive to produce than most commercial foods. This is a very interesting time in the history of spirulina production because innovations driven by attempts to grow algae faster and more efficiently for a myriad of new food and non-food related uses are being investigated in labs and universities across the country. For example, strains of spirulina that can grow faster in colder weather are being investigated. That could potentially benefit Cyanotech greatly, given that production slows during the winter months on the island. I was glad to see the company advertising for a production manager about three months ago because this seems like a perfect time to be hiring, as so many top people in the field of bio-chemistry must be looking for positions in the field of algae production now.
All we need to know is that, in the $3 range, Director Davis bought various amounts of Cyanotech stock adding up to over 36,000 shares in March of 2011, and subsequently the stock hit a high of $11, a rise of over 300%, about a year later. And recently, in February of 2014, he bought a larger amount of stock, 50,000 shares at a price of $5.34. That's the Main Event for us now. Everything else is really just a sideshow.
The codex includes "the latest specifications for the identity and purity of about 1,200 food ingredients, including test methods and key guidance on critical issues." One new monograph in the codex is spirulina, "a food ingredient that was recently approved as a natural source of blue color for candy and chewing gum by the FDA. Formulators can also use spirulina in specialty food bars, powered drinks and other products due to its non-animal protein content."
I should mention that this weekend at Anaheim, the company will be introducing Green Complete at one of the two major trade shows for the nutraceutical industry called "Natural Products Expo West." It's strictly for the industry, and the public is not allowed, and if you're unaffiliated, it costs $500 to attend. I used to go to these shows because I was a stockholder in Natrol, and knew the founder and CEO of Natrol, who would leave a free pass into the show for me at the front desk. It was very interesting and informative to go to the different booths and see what products the companies were touting, and to talk with their representatives, and observe how they were attempting to sell themselves and their products. If I had known about this earlier (I just found out yesterday that it's this weekend), I might have found a way to attend. I'd really like to see what sort of effort Cyanotech will be making at the show.
These are trademarks not patents, but companies file for trademarks all the time that they end up never using, so we don't want to read too much into what they are doing. However, it is interesting that they filed for all three of these in the same month, and one of them has become a real product that they are selling now. I'd be very interested in the opinion of your friends. One thing, the product itself may or may not be exceptional compared to other, similar products, it's just that Cyanotech, with all the access to box stores and large chains on the mainland that it has developed for its branded products over the last few years, may now have the clout to bring something like this (and other new products) forward. We'll see.
In December, 2012, Cyanotech filed three trademark requests at the patent office: One for "Green Complete," it's new spirulina-based powder, whose status was "Registered" as of 12/24/2013, and is being sold now, and two others: "Hawaiian Energizer," whose "Notice of Allowance" was issued on 2/25/2014, and "Kona Keola," whose "First Extension" was granted on 1/29/2014. Brace7 mentioned that Cyanotech might be coming out with a new beverage, referring to it as "just a rumor?" but I'm struck now by how "Kona Keola" sounds like a name designed to sound something like "Coca-Cola," as if it is indeed meant to be a beverage. However, "Hawaiian Energizer" could possibly be a beverage, too. It's all grist for the rumor mill, since neither of these two names could have anything to do with a beverage as such. But it is fun to wonder what they are up to with regard to those trademarks.
If bulk sales had just held study, year over year, let alone increased, the sales of the company would have jumped by double digits: 16%. That's the figure you should be considering, not the 2.7%, if you are weighing the wisdom of switching to branded sales.
Well, I'm often wrong, so I may not be understanding, but it is not correct that the company has not disclosed actual levels of sales for branded and bulk products. Here are the figures from the latest quarterly report, which I have been using:
Total bulk sales for the quarter in 2012 were $4.1 million.
Total bulk sales for the quarter in 2013 were $3.138 million.
The total decline in bulk sales for the quarter was $962,000.
Percent decline in bulk sales = 23.5%.
Total packaged sales for the quarter in 2012 were $3.142 million.
Total packaged sales for the quarter in 2013 were $4.3 million.
The total increase in packaged sales for the quarter was $1.158 million.
Percent increase in packaged sales = 36.9%.
Total combined sales for the quarter in 2012 were $7.242 million.
Total combined sales for the quarter in 2013 were $7.438 million.
Total combined sales increased by $196,000.
Total percent increase in combined sales - 2.7%
I'll follow this with another post.
Reuters has a story out with the headline today, "Ukraine crisis new rallying point for U.S. energy export backers." It's all about lessening European dependence on energy exports from Russia, particularly oil and natural gas. But that would be true for energy exporters from India too, such as the Indian Aemetis plant, which exported 20 million gallons of biodiesel to Europe last year and could likely go much higher with its new distilled biodiesel, a high-quality biodiesel in demand.
That's probably Green Complete, a brand-new spirulina-based powder with greens, wheat grass, and antioxidants like Goji berries. You make smoothies from it. I'm interested in trying it out myself perhaps, just haven't ordered it yet. I have no idea what would be the consumer demand for such a product.
Well you don't seem to be addressing my points, which maybe you can do easily, I don't know, but you seem to be just basically repeating what you said before. I see your math as ignoring the fact that you are comparing rising branded sales against DECLINING bulk sales (caused by production problems that they appear to have fixed for the nonce). Obviously they couldn't make much money if 58% of their business was tanking, regardless of their soaring branded sales. Suppose you weigh 150 pounds, and have a cancer in 58% of your body that causes you to lose 23% of your weight there, but the cancer-free part of your body gains an astronomical 37% in weight. Your total body weight is only going to go up by three pounds, to 153. That's basic math.
I see the current troubles with Russia, Ukraine, and Europe as possibly "fueling" greater demand in Europe for the distilled biodiesel that our India plant provides. According to a 2010 report, Europe is dependent for about 35% of its oil imports from Russia, and this current crisis is likely a big reminder that they need to lessen that dependence by developing alternative sources for their fuel supplies. I just see them as angry with the Russians about what they are doing in Ukraine, and that's a possible positive for creating greater demand for imports from elsewhere, which could be a selling point for the Kakinada plant.