Leading Brands, Inc (USA) (NASDAQ:LBIX)

Buyers Jump into Leading Brands, Inc (USA) (NASDAQ:LBIX)

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Shares of Leading Brands, Inc (USA) (NASDAQ:LBIX) are up over 50% and reversing the stock’s ten day decline following the company’s earnings announcement for Q2 2017. Observers believe the market is viewing the previous sell-off as overdone. Investors are buying in abnormally large quantities and the stock’s volume is on pace to register a number 20 times the listed daily average.

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Leading Brands, Inc (USA) (NASDAQ:LBIX), headquartered in Vancouver, BC, Canada, and its subsidiaries develop, market, and distribute their own line of branded beverage products. These include TrueBlue, PureBlue, and LiveHappy Water.

Leading Brands Q2 Earnings

On October 16, 2017 Leading Brands, Inc (USA) (NASDAQ:LBIX) announced a $710,000 (-$0.25 per share) net loss from continuing operations versus a net loss of $949,000 (or $0.33 per share) in Q2 2016. Gross revenue for continuing operations for Q2 2017 was $510,000, versus $568,000 in the comparable period of last year. Gross profit margin for the quarter was 0.7%, up from (9.1%) in the same quarter last year.

LBIX Stock Reaction

On October 10, 2017, investors began accumulating shares, reportedly in anticipation of the earnings announcement. Shares boomed from $0.84 to $3.75 on October 13. The day of the announcement, shares reached $3.20 but closed at $2.82.

The failure to sustain the share increase led to a continuous decline. By October 31, LBIX stock hit a daily low of $1.30 – a 65% drop from its October 13 high. But today, investors jumped in and sent LBIX shares back up. They opened at $1.49 and have hit an inter-day high of $2.52. LBIX stock is trading around $2.25 at the time of this writing (11:52 AM EST).

Leading Brands Sales and Earnings History

In 2013, the company posted a per share profit of $0.15 and followed it up the next year with a figure of $0.31. Unfortunately, the next three years have seen losses. For 2015 the per share loss was (-$1.02), then a loss of (-$1.06) for 2016, and a loss of (-$0.86) for FY2017.

Sales have suffered as well. In 2013 sales were reported at $13.4 million and 2014 saw sales of $11.9 million. But in 2015 sales were just $400,000, then the next year just $600,000, and $900,000 for FY2017.

The one-year consensus price target amongst analysts is $4.40.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $LBIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Traders Cautious on Jump in Leading Brands, Inc (USA) (NASDAQ:LBIX) Stock

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Nano-cap Leading Brands, Inc (USA) (NASDAQ:LBIX) stocked rocketed over 68% Friday to end the day at $2.27 on volume over 128 times its 30-day, daily average.

Leading Brands, Inc (USA) (NASDAQ:LBIX)

About Leading Brands Inc.

Nano-cap Leading Brands, Inc (USA) (NASDAQ:LBIX) is headquartered in Vancouver, BC, Canada. It develops, markets, and distributes beverages in Canada, the western United States, and Asia. The company’s core product lines include premium spring waters and fruit juices. The company was formerly known as Brio Industries Inc. and changed its name to Leading Brands, Inc. in October 1999.

Some nano-cap observers believe the dramatic increase of Leading Brands, Inc (USA) (NASDAQ:LBIX) stock last week could be due to speculation that traders may be betting on a play in the near future by a braoder market than usual based on the recent moves by former nano-cap Helios and Matheson Analytics Inc (NASDAQ:HMNY). HMNY shares are up over 675% in the past month.

However, it should be noted that while LBIX shares have increased 134% over the past month, the beverage company has not released any news that would point to a dramatic increase in revenues or earnings as Helios and Matheson Analytics did.

LBIX Stock

In 2015, Leading Brands, Inc (USA) (NASDAQ:LBIX) posted sales of $400,000 and that sales figure improved to $1 million for 2016. Also to the benefit of LBIX shareholders is the fact that, according to reports, the number of outstanding shares has declined each year since 2013. However LBIX shares have posted per share losses each of the last three years, In 2015 investors lost (-$1.05) per share, (-$1.09) in 2015, and (-$0.88) for 2016.

Until last week, shares of Leading Brands, Inc (USA) (NASDAQ:LBIX) had been sliding since May when they last hit $2.27. The price action on Friday saw LBIX shares hit an inter-day high of $3.75 which is considerably over their 52-week high of $2.92.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $LBIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.