Natural Grocers By Vita Cottage (NGVC)

[investora2z]

NGVC results are expected to be declared early next month. For the full year 2012, the sales had increased by 27% to $336 million ($264 million in 2011). The corresponding net income had also increased by 90% from $3.5 million to $6.65 million. For the quarter ending December 31, 2012, the sales were $95.83 million ($74.84 million in the same quarter in 2011). The net income increased from $0.99 million to $2.22 million during the same period. Even sequentially, the revenue and net income had shown reasonable growth. The stock is up by more than 61% from its offer price. It had sold off early this month after hitting the high of $26. It has rebounded from $22.53, and is now looking strong. It is trading well above the 50 DMA and the 200 DMA, and the volumes have picked over the last few days. The 3 month average still remains higher than the 10 day average due to the big volume days in the second week of this month during the sell off period. In a run up to the results, the volumes are expected to remain robust and the stock price may try to touch higher levels. Market for organic foods & vitamins is increasing fast and other companies are launching new products all the time. Recently, ChromaDex corporation launched its new product Purenergy which is a low caffeine drink containing its proprietary ingredient pterostilbene. CDXC's product BluScience, which contained the same ingredient, was a success, and it is expected that this new product may also do well. Development of new products and also improving the efficiency of its retail chain is the key to future growth of NGVC. Relatively, it works on a small store format, and the customer experience is extremely important. The next trigger for the stock will be the earnings.