The bottom line is that we're paying Bailey & Deal (who by the way, other than options that were given to them own absolutely no stock in the company) a lot of money to do their job. If the CEO and CFO can't get financials out in a timely basis, they aren't doing their job, and Mike Davis needs to wake up and do something about it.
Just another example of incompetent management. Getting into a #$%$ contest with Valensa that cost millions and taking over 3 years getting extraction equipment in place are some of the recent examples that we know about. I expect another episode of inflated inventory adjustments similar to what occurred a few years back. I'm not even going to comment on the quality of the astaxanthin that was being extracted in New Zealand.
Let's see...announce a $0.25 dividend, exercise options for $1.05, sell enough stock to cover purchase cost so's not to come out-of-pocket at a price that rose because of the dividend, then pocket the dividend. This just doesn't seem right to me. In my humble opinion, this stock was manipulated for the benefit of the CEO at the expense of all us other shareholders. Thanks for the kick-in-the-face buddy. Maybe it is time for a change here!
I guess I should be talking to myself. There doesn't seem to be any intelligent posters here, just pumpers throwing juvenile insults at anyone wanting to engage in a valid discussion. I was hoping to find someone with some insightful input regarding the company's defense in this litigation.
Based on what's described in their 10-K, the amount of litigation seems awfully high for a company of this size. The stock valuation here is high, so the litigation risk and inherent costs associated with it should be a major concern.
Based on the timing of this announcement, I hope this isn't a prelude to a poor earnings report. I supposed the initiation of amortization of the equipment and start-up costs (operational learning curve, etc.) will hit earnings earlier than the benefit of longer term cost savings, but if everything works out, it should be the start of a major move up.
dmesshian. Please be advised that this is your final warning. I post only under the "reversesplit" identity, and I have no relationship with any other poster on this or any other message board. Post just one more libelous or misleading message on this or any other board regarding my identity or your mis-perceptions, and I will pursue any and all appropriate remedies.
I don't typically get involved in responding to the various mudslingers on any of these boards as it's a waste of time and accomplishes nothing. That being said, I have no relationship to sjohns444, and my comments regarding UNFI were based on my preference to buy into a company in this space at a much lower earnings multiple. What I'm wondering in regard to dmesshian is, that given the time he spends posting on NGVC's board, does he own stock in any other companies? If not, spend some of the time you're fretting over your position in this one and find some more to invest in. Yes and unfortunately, I dropped a few points on my UNFI investment, but I'm diversified, I won't lose any sleep over it, and I'll most likely be OK in the long run. I've also had positions in NGVC in the past that were profitable and may well invest again in the future (I thought they were one of the better stores when I shopped at one of them in Colorado a few years back).
If you haven't already, take a look at CYAN on the supply side. An astaxanthin and spirulina producer in Hawaii, if new extraction equipment pans out, I'm looking for a double (at least) from current levels. Recently settled litigation hurt earnings over past two years. Tight supplies amid growing demand may lead to buy-out from major supplement producer.
UNFI is announcing earnings on Monday. I picked up some on the pullback today. They should do somewhere between $.70 to $.80 for their third quarter. At this share price level, it's about at a 20 forward PE. When the retailers are twice that (or more), it seems like a bargain to me.
The bottom line is that there's too much competition in the organic retail space to justify the sky-high earnings multiples, and these multiples will (continue to) deteriorate. Personally, I don't think any of the organic retailers can grow earning faster than the multiples fall going forward. The risk at these levels is just too high when compared to the probability that I'm wrong.
The winners in this space are going to be the companies that supply the retailers. My bet is on United Natural Foods who's going to benefit from every new store opening. They also have a toe in the retail area with a dozen or so Earth Origins markets which provides them a finger on the pulse of the industry they supply.
I would have preferred to have seen a regular quarterly dividend of 5 or 6 cents per share instead of the one-time 25 cent pay-out. The only thing this type of dividend policy does is create a stock price spike followed by sharp decline ex-dividend.
Did anyone look at the latest proxy statement and 10-K? These guys are doing nothing but milking the cash dry. $240,000 for a CEO, $250,000 for a CFO, $120,000 for BOD fees. For what? They have done NOTHING! One and a Quarter Million Dollars last year for SG&A expenses. This is just my humble opinion, but how can these people sleep at night?