LM.v/LMDCF -.01 to C$.78
Did some more research on Lingo Media. They have forecast C$.10 eps for 2015. They generated .072 thru 9 months.
Sales trends are upwards but not evenly positive. Gross revs are a bit erratic. Here are the gross revs for qtrs ending 12/14 onwards:
1,176, 652K, 1,795, 1,176. The resulting net incomes were 158K, 225K, 979K and 694K.
So hard to predict gross revs and hence eps. But found out that their print business in China is pretty static and they only report it in Q2 and Q4 as royalty income. That explains why Q2 was so great and Q3 fell off in both gross revs and net income. China is about C$900K gross revs in Q2 and Q4. So expect Q4 to pop back to over C$2million in gross revs. This should ensure they hit close to C$.10 eps for 2015. Q4 will include annual bonuses and other accounting adjustments but net income should be similar and probably a tad better than Q2 number of .04eps.
Online is where the growth is coming from for Lingo Media. In 12/14 qtr they had gross revs of 1,176. Subtract 900K for printed books and you get 276K for online revs. Fast forward to Q3 and the 1,176K revs was all online so huge growth in online revs in a year.
The lumpiness in qtrly revs will continue but the impact of the China printed book revs will become less and less as online revs grow.
A friend talked to mgmt during a recent conference. They are talking .13 to .15eps in 2016.
So I bought some more LM.v yesterday at .79. It's a few months until they release Q4 and remember Q1 will be lower since it won't have any printed book revs but the trend appears to be higher.
10X .10eps = C$1, currently .78. 10X .13eps = C$1.30 so decent upside from here as market sees positive earnings continue.