Savvy Trades and Investments

[SSKILLZ1]

INBP

Well I have a minuscule position acquired over the last week +.

1) Obviously I like the last quarter as it was rock solid .031 is easy to like Against a stock under .20.

2) They seemed rather optimistic mention new products and improving margins, I believe those two things will occur.

Do I think q3 is sustainable of .031? No I don't. I think GP % is abnormally higher in q3 look at fy 18 as well, notice gp % was the highest in q3. So when I say it is not sustainable, I'm think q3 is sustainable every q3, it is just not in context of all the quarters of the year. However do we need it to be sustainable at these prices the answer to that question is also no.

I feel q4 will be a very good quarter I'm expecting the .015-.02 range for q4. That will put earnings in the .06-.07 range for the fy, and I expect next year over GP % and sales to continue to improve hence I expect results to be in the .07-.10 for fy 2020. Now I think this stock should always get a low pe, and I do believes sales and margins will be lumpy, where we will see a quarter near the low end be .01-.015, and the average quarter closer to .02, with q3 obviously being the best quarter in fy 20, for what ever reason GP % Runs higher in q3, although I think GP % Will improved from a annual perspective in fy 20 versus fy 19, and sales will continue to increase. It is a small position, you have liquidity, customer concentration, and Lumpiness. Having said that at anything from the low .20 on down the stock offers a good risk/reward profile here. All is just my opinion, and I could always be wrong though.