SwingTrade Member Forum

[MikeDDKing]

Here is why I'm bullish on RBCL...

RBCL IMO will be a multibagger within the next year and will likely have a 50-200% move upon releasing their blockbuster Q3 earnings announcement to come out by mid November. RBCL is a maker of nutritional and medical products and thus is recession resistant. My estimate is that they will make at least $0.04/share in Q3 and possibly as much as $0.07/share! Those will be awesome earnings for a company that last traded at $0.51. Here are some more reasons why I think they are poised to move significantly higher:

1. Huge Backlog Increase - Backlog jumped from $6.1M to $11.2M for their CCI account in the most recent quarter which is unprecedented!. To put this in perspective their revenue last quarter was $6.9M. Also, the backlog only represents a portion of their sales going forward. They have GM of 53.4% so additional sales drop rapidly to the bottom line.

2. Rapidly Growing Medical Sales - Medical sales jumped 40% year-over-year and looks like it will continue. At the end of March they announced an expansion of their medical segment into Latin America. They also announce in February that they would begin selling their products in Kroger. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28065107 http://investorshub.advfn.com/boards/read_msg.aspx?message_id=26926765

3. Q2 EPS One-Time Items - Q2 EPS was impacted by some one-time items. They incurred expenses for an event to train/motivate their sales associates and also had expenses for renovations on their headquarters' building. They didn't quantify the costs for these one time items but certainly EPS would have been higher without them. I suspect the EPS impact was on the order of $0.008/share. Also they had some shipping delays that impacted Q2. Without these one-time items the Q2 report would have been much better.

4. Strong Balance Sheet - RBCL has a book value of $0.39 and only a tiny amount of debt. That puts them in a strong position financially to grow.

More DD on my largest holding can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=9877

Mike