Value Microcaps Motherboard

[otcbargains]

XGEN - .0315 is a new recent high. Why do I like it so much? It looks like they will do 15 mil in revs this year from their pool and spa divisions alone. That doesn't include Solar and Wind divisions. The bulk of it coming in 3 quarters since the Paddock acquisition and internal growth are coming after the 1st q was already in the books. That represents a 500% y/o/y revenue increase. In the 4th q they had 36% gross profit margin with about 350K in SGA expenses. The 1st q saw the gross profit margin drop for reasons explained in the last report but they have said they will be returning to higher gross profit margins.

Here are some quotes regarding future margins.

Gross Margin. Gross margins were 22% for the quarter and six months ending March 31, 2014. With our actions to assume some of our subsidiary’s debt and retire that debt by issuing additional shares of our common stock, R.I.G.’s balance sheet will become stronger, allowing it to demand better terms and pricing from its suppliers which will over time improve operating margins and thus profitability. By launching its pool maintenance division, R.I.G. will both increase revenues and margins over the course of the next 12 months. By working closely with WindPower Solutions, Inc., Cameo Solar can expect to provide
additional revenue and income going forward.

With interest rates being lower and the economy beginning to show signs of improvement in R.I.G.’s primary Phoenix metropolitan market, we expect these trends to continue to improve, and with the
significant reduction in debt and the ability to demand better prices and terms from suppliers, management believes that the margins will improve significantly within the next 12 months

The bottom line expenses will increase due to the acquisition of Paddock but even if they double there should be plenty of profit going forward.

15 mil revs times 36% gross profit minus 700K SGA expenses per q still leaves a huge net.

None of this even gives the wind power division any consideration and they are working on some big things there that I just assume wont come to fruition but if it does it would be a game changer.

http://ih.advfn.com/p.php?pid=nmona&article=61247817


Here are their websites.

http://www.cameopools.com/about-cameo-pools/

http://www.paddockpools.net/about.php

http://nexgenholdingscorp.com/

http://wpienergy.com/

It is set up where the increases in revs should result in large q over q over q increases with them looking something like this.

the q being reported in a few weeks should be about 3 mil which equals all of last years revs then the next shld be closer to 5 mil then the following q should have revs somewhere in the neighborhood of 6 mil of they are to meet their guidance and again this doesnt include revs from solar and wind operations.

Its still early but shares are being snatched up.