Capstone Companies Inc (CAPC)

[greasemonkeyshoes]

eps for q4.....
assuming 4q=3q in term of metrics
sale growth of 18%
net before tax of 10%
28% tax rate
We have for the next Q
sale = $9.6 million or $8*(1+20%)
net before tax = $0.96 million
net after tax = $0.7 million
EPS= 1.4c or $0.7 million/ 46.7 million shares
my concerns
1 too many shares
2 1q 18,2q 18 both are in slow season(if I were a buyer,I would wait few days before 2q ER)
3 margin compression with topline growth,a one-time event or built into the business model,is my most concern;or cost of branding/licensing(like Hoover) is flawed and the wrong way to go
4 return for 4q: higher volume in q3,higher returns in q4.
again
my EPS is capped at 1.4c and it is just my opinion. I believe this is why the stock price has languished since 2q and most likely for the next 6-9 months.Remember: price was 56c before the 2q ER;someone knew something,channel-stuffing??