Reeds - 5 Stocks With Insider Buys Filed On October 15 To Consider
October 16, 2012
by: Markus Aarnio
>>> 4. Reed's, Inc. (REED) makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In 2012, the company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.
Insider buys
James Linesch purchased 62,338 shares on October 11. James Linesch serves as CFO of Reed's.
Thierry Foucaut purchased 41,299 shares on October 11. Thierry Foucaut has been Reed's Chief Operating Officer since May 2007.
Financials
The company reported the second-quarter financial results on August 13 with the following highlights:
Revenue $7.8 million
Net income $0.4 million
Cash $1.4 million
Outlook
Chris Reed, Founder and CEO of Reed's, Inc., commented on August 13:
"This is our 11th quarter of double-digit revenue growth and has resulted in the company moving into a profitable position. The second quarter results are confirmation that our 2012 business plan remains on track. Our branded and private label categories continue expand. We believe our momentum will continue in the second half of the year. Our new Kombucha line continues to roll out nationally. Early results are positive."
My analysis
The stock has a $10.5 price target from the Point and Figure chart. There have been two insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a forward P/E ratio of 60.69. The stock has not traded at $10 since 2007. I am cautiously bullish on the stock currently. <<<
AI
