Noble Roman’s, Inc. (NROM – $1.63), the franchisor and licensor of several pizza concepts reached revenues of $2.1 million in the third quarter ending September 30, 2014, an increase of 9% compared with sales of $1.9 million in the third quarter last year. Net income in the third quarter of 2014 picked up nicely to $499,000, or $0.03 per share, compared with $402,000, or $0.02 per share, in the third quarter last year.
Net sales for the nine months ended September 30, 2014 were $6.1 million, compared to $5.8 million in the same period in 2013, an increase of 5%. Net income for the nine months, ended September 30, 2014 was $1.44 million, or $0.07 per share, compared to $1.30 million, or $0.07 per share in the comparable period last year.
Operating margins were 40.7% in the third quarter of 2014 compared to 39.0% in the third quarter of 2013. [click to continue…]
Thanks to the acquisition of Provital Solutions, a few months ago, LiqTech International (LIQT – $1.27), the clean technology company that manufactures and markets highly specialized filtration products and systems, was able to announce its first profitable quarter since Q1 2012.
Net sales for the three months ended September 30, 2014 were $4.93 million, compared to $2.95 million for the same period in 2013, an increase of $1.98 million or 67%. This strong performance is primarily driven by higher sales of liquid membranes, including Provital filtration systems (up $1.85 million as compared to last year), and higher Diesel Particulate Filter sales (up $133,000). Net income for the quarter ended September 30, 2014 was $348,000, compared to a net loss of $904,000 in the same period last year, representing an improvement of $1.25 million.
Gross profit margin increased to 29.8% in the third quarter this year, compared to 9.3% for the same period last year.
Net sales for the nine months ended September 30, 2014 were [click to continue…]
Acme United (ACU – $17.40) reported record sales and earnings for its third quarter, ended September 30, 2014. Sales reached $30.0 million, an increase of 36% compared to the third quarter in 2013. Net income in the third quarter of 2014 was $1,190,000, or $.34 per diluted share, up 24% in net income and 17% in diluted earnings per share.
In its first full quarter after being acquired by Acme, First Aid Only (FAO) contributed $4.3 million in sales and was accretive.
The integration of FAO into Acme’s two existing first aid brands, Pac-Kit and PhysiciansCare, is going smoothly. The initial goals of combining the sales forces and expanding the offerings have been completed. Next on the agenda are the reduction of duplicate products between the three first aid brands and the integration of Acme’s computer system at FAO.
In the coming months, the acquisition is expected to start generating cost savings as a result of the higher combined volumes that Acme will achieve. This should lead to [click to continue…]
Warning: this article contains images that some might find distressing.
I’ll start this recommendation with a confession. I only like biotech and medical device companies after they’ve received regulatory approval. The trial process before a product or drug can be brought to the market, is just too time and money consuming for my taste. Even more importantly, despite fine test results a regulatory body, like the FDA, can always reject a drug or ask for more trials. I learned the hard way…
Several years ago, I invested in a couple of biotechs with little success. And because being a good investor includes learning from past mistakes, I’ve steered away from those types of stocks since.
Instead, I search for companies that already have obtained regulatory approval, but for some reason haven’t reached their potential yet. In January of this year, we featured IsoRay Inc (ISR – $1.59) on Smallcaps.us, a medical technology company and innovator in seed brachytherapy and medical radioisotope applications. Although the company had received FDA clearance to treat certain brain cancers in a revolutionary way, sales hadn’t picked up yet.
We sensed an opportunity and recommended to purchase shares at $0.75. Less than two months later, IsoRay was trading at $3.30, up 340% from our recommended price.
A Similar Company
We’ve found another biomedical company, which is [click to continue…]
Every now and then we get confronted with articles in the financial press that one should avoid small cap stocks. The authors usually reference to the higher probability of companies in that market segment or being fraudulent entities.
We agree that looking at the overall market, small cap stocks are riskier than large caps. It’s true that the chance of a small company going out of business is higher than a mature, established one. A small company often doesn’t have the financial strength to cope with setbacks or delays in the development of their product or service.
BUT, and we can’t emphasize this enough, when you spread your investments over several thoroughly researched small cap stocks, you eliminate 95% of the risk. In addition, it’ll be far more rewarding than buying Wal-Mart or Boeing. Time and time again, research shows that a portfolio of smaller issues outperforms most other assets.
So why is it that Wall Street isn’t fond of small caps?
The major problem that fund managers have with small caps is that [click to continue…]
Acme United (ACU – $17.54) had an excellent third quarter as it achieved record sales and earnings. Net sales for the third quarter, ended September 30, 2014, reached $30.0 million, compared to $22.1 million in the same quarter last year, an increase of $7.9 million, or 36%. Net income in the third quarter of 2014 rose by 24% to $1,190,000, or $.34 per diluted share, versus $959,000, or $.29 per diluted share, in the comparable quarter last year.
Organic sales for the third quarter increased approximately $3.5 million, or 16%, year over year. This was mainly driven by strong back-to-school sales where iPoint pencil sharpers excelled, increased Camillus knives distribution where Les Stroud continues to do well and first aid sales. Recently acquired First Aid Only, contributed about $4.3 million in sales during the quarter and is on target to meet its goals for this year.
For the nine months, ended September 30, 2014, net sales were [click to continue…]
Last week, we recommended MCW Energy Group (MCW – $1.01), not only because it has an environmental friendly technology with which it can produce oil from oil sands at $35 per barrel, but also because it had recently demonstrated the validity of its technology on the oil sands of Utah. In other words, the company had gone through much of its de-risking cycle, so it was an ideal time to get on board.
Smallcaps.us recommended the stock last week at $0.87, and it closed yesterday at $1.01, up 20%. During the week, the stock reached a high of $1.14, up 31% compared with our recommended price.
Similar to what happened with Innovative Food the week before, smart investors recognized the opportunity and bought shares.
MCW announced this week that it completed [click to continue…]