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.

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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.

Eco-Stim Energy Solutions (Nasdaq: ESES) Shares Rocket on Massive Volumes

Eco-Stim Energy Solutions, Inc. – Nasdaq: ESES 

Houston, TX-based nano-cap Eco-Stim Energy Solutions Inc. shares are up over 85% on massive volumes. Shares of ESES, traded on the Nasdaq, normally have an average daily volume of just over 55,000 but in early morning trading over 1.4 million shares have traded hands. The catalyst appears to be an announcement that the Eco-Stim has executed a one-year contract, with an option for a second year, with a well-capitalized and established US exploration and production company to expand its pressure pumping operations into one of the fastest growing and most active oil and gas regions in Oklahoma. 

J. Chris Boswell, EcoStim’s President and Chief Executive Officer commented, “We have said for some time that we would not enter the U.S. pressure pumping market without some type of technology advantage, a contract and better market conditions. We now believe we have met these criteria and while the work contemplated under this contract is not expected to be executed solely with the TPU technology, we will utilize this equipment as part of the service offering. In addition, we believe that this region is poised for significant growth and this contract will position the Company in an attractive region with an anchor customer.” 

Eco-Stim’s reported sales were $800k in 2014 and $13.8 million in 2015. ESES shares have not yet produced a positive EPS for shareholders. However, losses have narrowed since 2012 when ESES reported a loss of $2.03 and in 20155 the loss was a smaller $1.36. Two firms follow Eco-Stim and both rate ESES as a “Strong Buy” with a consensus price target of $4. 

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/27/2017
Ticker Symbol ESES
Last Price a/o 9:56 AM EST  $                      1.47
Average Volume 55,120
Market Cap $11.4 million
Sales $8.8 million
Shares Outstanding 13.64 million
Share Float 13.18 million
Shortable Yes
Optionable No
Inside Ownership 5.80%
Short Float 0.23%
Short Interest Ratio 0.56
Quarterly Return -57.37%
YTD Return -15.62%
Year Return -64.00%

Cadiz Inc. (Nasdaq: CDZI) Shares Benefit from Leaked White House Document

Cadiz Inc. – Nasdaq: CDZI

Reports of a leaked document from the Trump administration appear to be pushing shares of Cadiz, Inc. higher. CDZI, traded on the Nasdaq, closed yesterday at $12.70 and have reached $15.10 in morning trading.

The Orange County Register and Kansas City Star are reporting that a Cadiz Inc. aquifer project could receive fast-track approval. This would be consistent with President Trump’s stated goal of initiating new infrastructure projects to create jobs.

Cadiz Inc. is a renewable resource company based in Los Angeles that owns over 70 square miles of property with significant water resources and clean energy potential.

Since 2012, Cadiz Inc has reported annual sales of $300,000. Shareholders of CDZI have seen the last five years post negative EPS – a loss of $1.35 in 2015. One firm follows Cadiz and rates CDZI shares as a “Strong Buy” with a price target of $17.50.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.