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wadegarret

06/04/05 10:21 PM

#12996 RE: avandalay05 #12993

Avandalay- JVA

Avan- I think it's important to note that their fully diluted shares are now around 5.5M( after the recent IPO), so if you recalculate their EPS for the Mar qtr based on that, you would get around $.07 fully diluted instead of the $.10 reported. So, going forward, if they make the same $8M or so in revnues/qtr, they would show $.07 EPS/qtr. Avan- not a bad company- decent balance sheet which will improve quite a bit from the IPO cash inflow, and looks to be around 35% revenue growth for the Mar qtr 05 over Mar qtr 04. PE looks to be about 17 based on $.07/qtr. I noticed they took a loss in one of the 04 qtrs- looked like gross margins were super tight that qtr- I would have to question why the margins were so tight that qtr. Overall though, this is a very competitive industry and I just don't know enough about the coffee industry to make an informed decision as to how risky the stock is. I mean they could be a winner, but wouldn't be for me.