Small Cap Updates & New Recommendations for August 16, 2014 post image

Earnings season is in full swing, so we’re discussing interesting quarterly results from Noble Roman’s (NROM) and Enterprise Group (E). In addition, we have an update on the acquisition of WaterFurnace (WFI).

Noble Roman’s, Inc. (NROM – $1.70), the franchisor and licensor of Noble Roman’s Pizza and Tuscano’s Italian Style Subs, continues to benefit from growth in its three primary venues, which are non-traditional franchises/licenses other than grocery stores, the sale of take-n-bake pizzas through grocery deli departments and stand-alone take-n-bake franchised locations.

Sales for the second quarter ended June 30, 2014 were $2.09 million, compared to $1.99 million in the comparable period of 2013, an increase of 5%. The increase was mainly due to a significant rise in royalties and fees from stand-alone take-n-bake locations, which were $221,000 for the second quarter of 2014 compared with $53,000 in same period last year. Net income was $503,000, or $.03 per share, for the quarter ended June 30, 2014, compared to [click to continue…]

The Cuda Grip & Scale tool, which won the Best of Show award in the FishSmart Tackle category, in full action.

Acme United (ACU – $16.72) reported record sales and earnings in its second quarter thanks to significant internal growth and a nice contribution from First Aid Only, the new first aid brand, which was acquired in June.

Next to the addition of First Aid Only, Acme also launched an entire line of fishing knives and tools in the second quarter under the new brand Cuda. About 30 tools, specifically designed for rigorous inshore, offshore and freshwater fishing, were shown to the public for the first time at ICAST. Similar to what Camillus did with Les Stroud, Cuda partnered with six professional fishermen who will use the Cuda tools on their popular TV shows. The tools are expected to be in stores in the fourth quarter.

Walter C. Johnsen, Acme United’s Chairman and CEO, noted that the third quarter already looks good thanks to First Aid Only and a strong order flow from the other brands. Moreover, many products are in the pipeline and positive results are expected from [click to continue…]

Goldsource Moves Eagle Mountain Gold Project Big Step Forward post image

Goldsource Mines (GXS – $0.24) published an excellent Preliminary Economic Assessment (PEA) report for its Eagle Mountain gold project located in Guyana, South America.

In order to minimize initial capital and project risk, the Company applied a phased-approach business model in which the easy accessible near-surface soft weathered rock (gold mineralized saprolite) will be mined first.

This conceptual approach encompasses four phases over four years. Phase I mining rates would be 1,000 tonnes per day (one 12-hour shift, 7-days per week) in year one. Upon successful completion of Phase I, the Company plans to systematically install and operate three additional similar plants over a four-year schedule with a cumulative rate of 3,500 to 4,000 tpd. The additional processing plants will be paid for through operating cash flow.

If all goes well, production could be initiated [click to continue…]