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Re: LongTrader718 post# 2193

Friday, 07/29/2016 5:35:21 PM

Friday, July 29, 2016 5:35:21 PM

Post# of 3126
Thank you, LongTrade.

A brief note on TWER. Weak balance sheet. Long-term debt is 86% of assets. Co. sustained operation mainly on a huge debt financing ($31M) in 2014 and a huge equity financing ($30.5M) in 2013. Burning cash year after year. Now down to about two quarters worth of cash. I actually think you are more likely to make money by shorting spikes or rallies. But maybe you are only day trading. Then nothing matters.

In comparison, CDXC is now debt free. And it's beginning to be a cash generator now. It's gross margin and operating margin are both on the rise. Financial metrics have improved dramatically over the past couple of years.

BPI Sports will soon be rolling out their Niagen-based dietary supplements in major retailers like Costco, Walmart, Walgreens, Target, Miejer, Kroger, Publix, Vitacost, QVC, Home Shopping Network, Shopko, Ahold, eVine Live, Ulta, and Wegmans.

And the company is in talks with major Fortune 500 companies for including Niagen/pTeroPure in high volume, non-supplement consumer products. They already have an ongoing JDA with P&G the might bring in milestone payments and recurring revenue in the future.

It seems they are gaining momentum. If they are successful, CDXC could be worth a whole lot more than now. Ingredients companies are generally awarded quite respected P/E multiples.

So, yes, CDXC looks more like a long-term or short-term play on the long side. But again always do your own research. It's still small and bears following closely. Adjust your stand and position regularly based on business fundamentals. There will be a lot of swing trade opportunities too, although volatility is getting reduced for now.

Good luck to you too.
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