Hey dak I totally agree! So here is some of my DD on this stock and maybe you / other board members can help me shed more light my post. I am long and looking to extend my position but the question is when - before or after the Q1 release?
So they state in the last 10k that cost of sales is ruffly around 75%. Now granted with the influx of volume I hope this number is less, however 4M of the sales were overseas and if the manufacturing is in the US it does cost some money to ship plus depending on the geographical location of the sales this could either increase or decrease overall profit.
The Q1 sales are 19M and general expenses are 5M, so that leaves them with about 14M with out costs factored in and if costs were around say 14M that leaves them with maybe 1M. But there was a backlog of 4.3M in product, they state it was because of demand, but could it be they were short in money for the supply and demand?
Other things that make me question if this quarter is going to be good or have any surprises in it, like diluting.
- Purchasing stock back with their own money, generally small buys but buys none the less! Could this be smoke and mirrors or do they really believe? And at the current PPS why aren't they buying now?
- The current PPS - lots of posts on this one!
- Have they started their buy back?
- And were are they getting the money to research and launch the near term 15 new products?
As always this is just my option / research and believe this is a solid long term play!
