Well based on the trading of late, it does not look like we are going to get any blockbuster news leading up to or at the upcoming CC?!
The crew in Tustin appear to be running this company "out of an abundance of caution"? There still do not appear to be any major moves on the expansion fronts, which of course is going to limit their capacity to grow and increase revenue significantly. All of this in the face of an extreme shortage of manufacturing capacity in the US.
It quickly becomes a Catch 22, they cannot handle any really large contracts because they don't have enough manufacturing capacity....at the same time, they are not going to be able to grow significantly without expanding and making use of their vacant warehouse space.
Yes they have become a solid little boutique CDMO with a strong financial base, but without growth, the share price is not going anywhere fast!
Our growth since March has basically mirrored that of the Russell 2K, and as of late, we are now regularly lagging the entire group of Russell companies...today the Russell is down .39% and we are down 1.78%(current).
Why so conservative??? I was hoping Nick would really grab the proverbial bull by the horns and start a rapid high growth expansion phase, but so far we have not seen any of that!
So are we going to have to sit through another yawner of a CC where the company discusses their maintenance shutdown, confirms full year guidance, and continues to review future expansion????
I realize there are a couple of small permits that have been issued and they may have also started on a small expansion, but I think we need to go big or go home as our competitors are expanding at breakneck speed to meet demand!
Of course the good news is that the preferred continues to throw off a nice dividend, we are probably cash flow positive and on our way to some kind of profitability and the downside is probably the $7 to $8 range.
The market rewards high growth above all else and the visionaries who run these high growth companies have made their shareholders very wealthy.....meanwhile we have become a model of mediocracy!
So yes we are certainly doing OK, and maybe that is all management is capable of at this time??
We have a lot of institutional support which is great, but they will not stay forever if their share purchases are not rewarded.
But I will reserve judgement until after the financials and upcoming CC are released....maybe Nick does have a plan???
