Waiting on that report like everyone else.
I'm posting old numbers.
I would never give estimates of forty cents in annual earnings with twenty five cents of annual dividends.
Second half 2019 sales $2,673,686
Second half 2019 pretax income $782,693
(taxes $4,050)
First half 2019 sales $2,866,756
First half 2019 pretax income $949,230
(taxes $9,450)
Sequential sales were down $193,070, down 6.7 percent.
Sequential pretax income was down $166,537, down 17.5 percent.
First half 2020 sales $3,455,005.
First half 2020 pretax income $1,171,613
(taxes $58,970)
Sequential sales were up $781,319, up 29.2 percent.
Sequential pretax income was up $338,920, up 43 percent.
Sequential pretax income and percent growth would have been even higher, had it not been for a $34,981 decrease in dividend income.
Sequential sales comparisons went from down $193,070 to up $781,319.
Whether or not looking at that comparison is significant I don't know.
There was a 47% product sales increase year over year in the first half of 2020, but was January, February and March 2020 still trending lower, like the latter half of 2019?
What were April May and June 2020 product sales? Were product sales those months much higher than 47% year over year?
If January February and March were flat versus a year ago, again, the trends may have been heading lower, does that mean that April May and June were up 100%? How many of the 173 new accounts occurred in April May and June?
Will second half of 2020 be up 100% versus second half of 2019 sales of $2,673,686? Are we looking at $5.3 million in second half 2020 sales?
Did the company do $8.5 million in 2020 sales?
I am asking, not estimating.
I just throw this out there Deet.
At $8.5 million in sales and an operating margin of a record 35% ...
Again, I am just throwing out an operating margin Deet, this is not an estimate. The $5.3 million in sales could just as easily be a first half 2021 number or a second half 2021 number.
Why could operating margins be above 33.4 percent, and at least 35% ...
Seven reports in a row had increasing sales which led to increasing operating margins AND comparison of sequential trends indicate that our operating margins were already higher than 33.4% in April May and June.
$1,855,000 income from operations on a half, any half, maybe this year first half or second half on $5.3 million in sales.
Dividend income I can't figure out so I'll just call it $1,900,000 in six months of pre-tax income.
Fully taxed income? Is the corporate rate 21%? Is Texas a state where there are tax receipts? I'm going to use 25% in taxes just because.
$1,425,000 in net income for a six month period.
That's 20 cents a share fully diluted.
Sixteen cents first half.
And then at some point,
Twenty cents in a six month period, maybe not the second half of 2020, maybe the first half of 2021 ...
Twenty cent halves.
Forty cents in earnings.
I don't care (well I do) if that happened in 2020, is happening now, or will end up 2021 with those numbers
You have to pay out more than 50% Deet in a dividend payout ratio.
Twenty five cents in dividends!!!
2.5% yield is a $10 stock price
You have to put a 25 multiple on that Deet based on growth rates.
Life has not gotten back to normal. They are growing again in 2021.
Twenty five times 40 cents is a $10 stock price.
"After some encouraging discussions, the principals backed away most likely due to the complexities of our forensic methodology" Joe writes about being acquired in the last shareholder letter.
Or, maybe over the years, Joe has not gotten his price.
I know Cheddar has been happy that we have remained independent, and his point has been proven over time.
Buy it up to $5.50 and wait for the letter, AKA for long time shareholders, don't let too much go between now and then. Good luck to all.
I'm going to hit send, and it will probably be formatted terribly. I truly hope the moderator does not make this post part of cancel culture IHUB history. Let this be please.
