Value Microcaps Motherboard

[cliffvb]

CNOA is having a great run today ahead of earnings. Now up 18% to 1.34 which is where I have been selling. I decided to lighten up ahead of earnings. Many expect a great quarter is coming but I think the enthusiasm may be premature because:

1. CNOA sold its er-mao-pao subsidiary a year ago so there will be no revs from that this time. That was a rice growing operation that is highly seasonal and weighted toward Q3 and Q4. They now have their trading and distribution business which is much less seasonal and should provide more consistent quarterly results but without the seasonal peaks that the growing business did.

2. A year ago, they earned 14c which is a tough comp plus they now have 73mil vs 59 mil shares a year ago, so they would have to improve net income by 23% just to maintain that eps.

I continue to like CNOA longer term but I expect I will be able to buy back cheaper shares after earnings are out, JMO.