In the fourth quarter, sales dropped to $1.66 Million with a $9,000 operating loss. No mention of the 4th quarter performance in the 10-K. Furthermore, only one board member owns any stock (Zipoy bought 5,000 share last November). This is not looking promising. I don't know who Nancy Peterson is, but the management and board that she has in place are not performing.
Armanino's missing the boat by shying away from offering more organic products. It would be great to be able to purchase their organic pesto sauce along with an organic pasta product. The new markets that would be open to them would result in much greater sales growth as well as a stock price that would resemble the valuations of other organic product companies.
I'm quite amazed that in this stock market, nobody seems to factor in future competition (look at Gopro as a recent example). Most organic grocery store chains are expanding at a rapid pace, and conventional groceries are increasingly offering more organic options. Non-competitive markets are disappearing, and profit margins will undoubtedly shrink over the longer term.
Thinking that a stock in this situation trading at a PE of 40 to 50 times earnings (annualized from previous quarter) is short sighted to say the least.
I saw that after I had posted. It bugs me that management would play games with press releases where they present apparently bad news with a positive spin. Especially right after ( or nearly simultaneously) after new shares are sold.
I believe we'll see a drop back to the $4 level after tomorrow's earnings announcement. I expect we'll see quite a large cash burn occurring over the last quarter.
If I understand it correctly, 63% of the test subjects on the Vagicaps experienced improvement while 48% of the subjects on the placebo did the same. Really? Only a 15% better result than the placebo? And you folks are bidding up the stock on this? A fool and his money... I'd bet that a little aloe vera would be of a greater benefit.
What is going on here? This company is generating income at a rate of $0.40 per share per year. Subtract the cash from the current stock price, and these earnings are only worth a little over $1? Am I missing something? Is anyone else backing up the truck?
Maybe, because someone did pick up 5,000 shares at $4.35, but come on management, give us a bone with some kind of a dividend.
There is one thing that confuses me though. The company is making no allowance for income taxes. Financials show positive retained earnings, so it would seem that there aren't any tax loss carry overs.
If the chief technology officer owns 0 shares, why should anyone else own stock in this company? Management owns little stock outside of options with the exception of the CEO, but now he's selling shares.