We'll find out soon enough if yesterday is a reversal or a head fake.
On a side note, Maxim lowered our price target from $7.50 to $6 but reiterated buy rating.
Missed 3Qs in a row so they had to downgrade the PT to save face.
Maxim attributes the miss to the yet-to-be-stabilized sales of Coco and Marley. Their miss was $3.8M on the topline. That's 20%. Savings / synergies in the cost structures weren't realized either.
I think we can surmise that Xing was also part of that decline. We know distribution grew 6% and Maxim puts that at $30M+ in its initial report. Bucha, we can't be sure, but it's probably growing. Aspen Pure is definitely growing because of APP. Those 3 are not enough, obviously, to offset the other decliners.
Maxim's Q4 estimate is now $14.6M, which would equate to $55.5M (GAAP) for 2017. Pro forma for 2017 would be around ~$60M. For reference, the pro forma of the entire company, as currently constituted, was ~$70M in 2016, about a 15% decline YoY.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.