SwingTrade Member Forum

[CPTMatt]

CZO.V/CRPOF is interesting

56% YoY growth in Q2. COGS decreased almost 12% YoY despite a YoY increase in sales of 20%. FY EPS of .08. The decrease in COGS attributed to operating efficiency and direct material productivity. Q4 earnings were inflated by a release of $1.15M in deferred tax asset and $603k investment tax credit. W/o tax credit & deferred tax asset FY earnings would have been .049.

If the company can sustain this type of growth and continue to drive productivity gains and/or cost reductions it should do well in the long-run. In the short term it looks like Q1 is seasonally the weakest.

Some issues
- 87% of revs come from 2 customers
- Q4 '15 had benefit from rising USD, going opposite direction now
- Some legal suits against them haven't been accrued for so an unfavorable judgment will mean a big hit to the P&L