I wish I had sold NAII over $11. So I could buy them all back below $10 today.
NAII isn't expensive? Now there's an understatement. They're temporarily losing a few million of low margin contract manufacturing revenue this quarter. But the more important, high margin beta alanine revenue is expected to continue growing at a healthy clip for the balance of the fiscal year. And then all segments are expected to grow at a double digit rates next year too (great news and better than I was expecting). CEO has to restore his credibility after shooting himself in the foot last quarter. So I'm hoping the 5-10% revenue growth target is on the conservative side.
Even with lower revenues, NAII fiscal Q2 earnings of .37/share (or .34/share without the exchange gain) is very impressive. And that also included another $1M in legal expense, which could drop sharply in the coming quarters. You've got over $9 in tangible book, including $3.20/share in cash. This cash cow is going to continue generating big earnings. Especially with the high margin beta alanine segment continuing to grow. So in Q3 (the 'bad' quarter ha), NAII could still earn over .30/share. Then could be back over .40+/share in Q4. A year from now, if you crunch the numbers with high margin beta alanine revenues at $8-$9M per quarter, you're going to have ridiculously strong earnings. Maybe earnings of .60+/share per quarter, with a cash position at $4-$5/share by then. Yeah I'd call the stock at $10 pretty dang cheap. If anyone knows of any other Nasdaq stocks with numbers anywhere near this good, please post them!
