Savvy Trades and Investments

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There's actually a couple of very positive statements in the NAII earnings PR (that I guess the AH sellers are choosing to ignore ha).

First, they see the Carnosyn beta alanine growth rate (a healthy 26%!) continuing for the balance of the fiscal year. This wasn't in the Q1 release. If you crunch the numbers, that would suggest an increase from $6.7M in Q2 to $6.9M in Q3 and $7.2M in Q4. This is the high margin segment. Q2 income from operations from beta alanine was $2,340,000 on $6.7M in revenues. Now compare that with the contract manufacturing biz. That contributed Q2 income from operations of $2,148,000 on $23.9M in revenues. So if they temporarily lose a couple million of that low margins contract manufacturing revenue...is that really the end of the world?? Such that the company trades at a P/E of 4 net cash. Especially with the high margin segment continuing to grow?

Second, they gave bullish guidance for next fiscal year. Talking about double digit growth for ALL of their business segments. I think we were all worried about what happens with the patent expiration. So it's great news to hear they expect continued double digit growth in the high margin beta alanine business next year as well!