Tuesday, September 12, 2006
Simmering
Looking at stocks again, SunWin (SUWN) has dropped to 69 cents. They announced results for the year ending April 30, 2006. Revenues up 28% to $15.4 million. $2.4 million in earnings (vs $829K). Stevia sales are up in July/August, but due to an increase in sales to Malaysia, Thailand, and Singapore. The 10-K is here. 74 million shares on July 6, 2006. No taxes. 2.4 cents per undiluted share earnings. Huge use of stock options. Huge capex for the year (I believe that was mostly genuine new investment). I'd say the stock is pretty much an indefinite call option on Stevia demand.
Jones Soda (JDSA) has dropped somewhat, but is still around $8. I'd have to merely guess about their future growth. It looks good, but I don't think the stock price is justified. The 10-Q is out for June 30, 2005. 25 million shares on June 30, 2006, 1.7 million options. Huge infusion of cash due to private placement. Revenues up around 11% from last year. Watch out for the tax benefit. $936K operating earnings. Cash flow from ops is weak due to AR and deferred tax. The big advertising costs are still there. I probably wouldn't consider buying the stock for anything more than $2.00 per share, but I'll buy the soda for that much. It's good stuff.
Miller Industries (MLR). 10-Q is out for June 30, 2006. Share count rock solid at 11.4 million shares. AR is up. Inventories are up. Revenues are flat. 48 cents per diluted share vs 45 cents last year. 99 cents for the half-year. Operating cash flow is actually slightly negative due to AR, inventories and pre-paid expenses. Big capex (but I seem to remember to expect that for some reason). Stock price is $17.48.
Overall, looking at market prices, it seems like a lot of the OTC stocks are down right now. Times like this can be fairly boring. Patience is the key. I've seen a number of people bail out of good investments merely due to impatience: fear of a falling or stagnant stock price. Even with stocks that I would have avoided, patience was usually a good thing (but not for truly horrifying stocks). This is the time when the businesses are quietly running their operations and events are very slowly transpiring. Simmering.
The spot price of uranium is unchanged this week. I've been thinking that after the huge jump last week, that the next spot market transaction could very well be at a lower price. It appears Russia will be building 9 new nuclear reactors.
Jones Soda (JDSA) has dropped somewhat, but is still around $8. I'd have to merely guess about their future growth. It looks good, but I don't think the stock price is justified. The 10-Q is out for June 30, 2005. 25 million shares on June 30, 2006, 1.7 million options. Huge infusion of cash due to private placement. Revenues up around 11% from last year. Watch out for the tax benefit. $936K operating earnings. Cash flow from ops is weak due to AR and deferred tax. The big advertising costs are still there. I probably wouldn't consider buying the stock for anything more than $2.00 per share, but I'll buy the soda for that much. It's good stuff.
Miller Industries (MLR). 10-Q is out for June 30, 2006. Share count rock solid at 11.4 million shares. AR is up. Inventories are up. Revenues are flat. 48 cents per diluted share vs 45 cents last year. 99 cents for the half-year. Operating cash flow is actually slightly negative due to AR, inventories and pre-paid expenses. Big capex (but I seem to remember to expect that for some reason). Stock price is $17.48.
Overall, looking at market prices, it seems like a lot of the OTC stocks are down right now. Times like this can be fairly boring. Patience is the key. I've seen a number of people bail out of good investments merely due to impatience: fear of a falling or stagnant stock price. Even with stocks that I would have avoided, patience was usually a good thing (but not for truly horrifying stocks). This is the time when the businesses are quietly running their operations and events are very slowly transpiring. Simmering.
The spot price of uranium is unchanged this week. I've been thinking that after the huge jump last week, that the next spot market transaction could very well be at a lower price. It appears Russia will be building 9 new nuclear reactors.
// posted by Bruce @ 7:44 PM 
