Acme United Again Achieves Record Sales and Earnings in Second Quarter post image

Acme United (ACU – $17.00) achieved record sales and earnings during its second quarter ended June 30, 2014. The Company’s sales reached $33.4 million in the second quarter, compared to $28.4 million in the comparable period of 2013, an increase of 18%. Net income in the second quarter of 2014 rose by 15 percent to $2,543,000, or $.72 per diluted share, versus $2,210,000, or $.68 per diluted share, in the comparable quarter last year.

This strong performance was both driven by the First Aid Only (FAO) acquisition, which the Company concluded on June 2 of this year, as well as by organic growth. As a matter of fact, even excluding the $1.7 million sales generated by FAO in June, Acme reached record sales in the second quarter. Especially a strong back-to-school season, increased Pac-Kit and PhysiciansCare first aid products sales, and a record performance by Clauss and Camillus generated organic growth.

During the six months, ended June 30, 2014, net sales were $52.5 million, compared to $46.1 million in the same period in 2013, an increase of 14%. Net income for the six months ended June 30, 2014 was $2,911,000, or $.83 per diluted share, compared to $2,520,000, or $.78 per diluted share in the comparable period last year, a 16% increase in net income.

During the conference call, following the announcement of the second quarter results, Walter C. Johnsen, Acme United’s Chairman and CEO, increased the Company’s guidance for 2014 thanks to the strong organic performance and the First Aid Only contribution. Sales are now expected to reach [click to continue…]

Small Cap Updates & New Recommendations for July 12, 2014 post image

This week we have an update on LiqTech International (LIQT) and we introduce a fast growing company called Creative Learning Corp (CLCN).

LiqTech International (LIQT – $2.08), a Danish clean technology company that manufactures state-of-the-art filtration products received a $200,000 order for Silicon Carbide (SiC) Membranes. The membranes will be installed at a German power plant to remove heavy metals from a flue gas cleaning process.

LiqTech and the end-user have developed a solution around the SiC membranes that reduces the environmental impact from coal and biomass fired power plants.

Mr. Finn Helmer, LiqTech’s CEO, commented, “We have developed a solution that reduces the annual load of toxic heavy metals being discharged into our environment. The solution is a great example of the benefits of SiC membranes compared to conventional technologies and competitor membrane products due to SiC membranes unique capability combining high filtration efficiency with extremely robust properties. Mr Helmer concluded, “We expect to see more orders this year from this application.”

LiqTech continues to be [click to continue…]

NIBE Acquires WaterFurnace for $30.60 Per Share post image

Swedish based NIBE Industrier AB, one of the leading heat pump manufacturers in Europe, has launched a takeover bid for WaterFurnace Renewable Energy (WFI – $30.40), one of the market leaders in the North American geothermal heat pump heating and cooling solutions market.

WaterFurnace shareholders will receive $30.60 per share in cash in a transaction valued at approximately $378 million.

We first featured WaterFurnace on Smallcaps in June of 2013, when we interviewed Rick Hoffmann, the Company’s VP Administration. At that time WFI’s stock traded at $20.25. So investors who picked up some shares a year ago, are looking at a 50 percent profit.

In order to complete the transaction, at least two-thirds of WaterFurnace Shareholders must vote in favor at a special shareholders meeting, which is expected to be held in August 2014. The Board of Directors and management of WaterFurnace, along with members of the Shields family, collectively holding [click to continue…]