PCGR - Extreme short term potential - penny stocks

Diabloiix · Tweet this Post! #1 (**permalink**) 03-06-2010, 06:24 PM

FINANCIAL STATEMENTS ANALYSIS

Both assets and liabilities remained about unchanged through the 2009 quarters, so the book value remained the same too at 1,97$ per share.

Cash per share is 0,53 $ , this have also experienced minimal variations during the quarters.

1st Quarter

2nd Quarter

3rd Quarter

Diabloiix · Tweet this Post! #2 (**permalink**) 03-06-2010, 06:25 PM

STATEMENTS OF OPERATIONS ANALYSIS

1st Quarter

Net sales: 9,064,923 $

Mark-up on sales: 31,15%

Selling expenses: 1,176,318 $ (0,1298 $ per net sales' dollar)

General and administrative expenses: 2,054,241 $

Operating loss: -1,312,238 $

Net loss: -924,784 $ ---> -0,11 per share

2nd Quarter

Net sales: 11,734,101 $

Mark-up on sales: 44,48%

Selling expenses: 1,074,882 $ (0,0916 $ per net sales' dollar)

General and administrative expenses: 1,680,535 $

Operating income: 652,814 $

Net income: 88,538 $ ---> 0,01 per share

- Net sales increased 29,5%
- Mark-up on sales increased 13,33%
- Selling expenses per net sales' dollar deacreased 29,43%
- General and administrative expenses decreased 18,2%

3rd Quarter

Net sales: 11,099,494 $

Mark-up on sales: 46,98%

Selling expenses: 1,254,932 $ (0,1131 $ per net sales' dollar)

General and administrative expenses: 1,699,338 $

Operating income: 371,200 $

Net loss: -267,552 $ ---> -0,03 per share

- Net sales decreased 5,41%
- Mark-up on sales increased 2,5%
- Selling expenses per net sales' dollar increased 23,47%
- General and administrative expenses increased 1,1%

Diabloiix · Tweet this Post! #3 (**permalink**) 03-06-2010, 06:26 PM

GEOGRAPHICAL SEGMENT ANALYSIS

The company's turnover is generated, in all three quarters, by personal care products' sales (for 75%) and medical products' sales (for 25%).

Most of this is generated in the United States.

1st Quarter

The strong negativity of the overall operating income is generated by poor performance in the United States key area, where products' market prices didn't able the company to cover selling and administrative expenses.

2nd Quarter

Great target met: positive operating income in the United States key area.

We can see the company pushing into Canada market as we note the great increase in turnover there if compared to the previous quarter.

At the same time we have a higher operating income from Europe, despite the diminishing sales, thanks to the extremely high mark-up on sales.

The turnover's increase in other countries further increases the positivity of the overall operating income.

Final result: Net income of 88,538 $ ---> 0,01 per share

3rd Quarter

In this quarter the overall operating income has been penalized from United States key-area results which had higher selling expenses if compared with previous quarter (as we can see from the Statements of Operations), and with a Gross Profit which is about the same, the result is a lower operating income for the area. This reflects clearly on the Net Result, which decreased from last quarter by a quantity comparable with the operating income's decrease in United States area (-260,174 $).

Diabloiix · Tweet this Post! #4 (**permalink**) 03-06-2010, 06:27 PM

Looking at the 2008 annual report we see an EXTREMELY high net loss:

Net Loss $ (13,623,120) or as much as $ (3,405,780) of avarage net loss per quarter

Now let's use the data we have for year 2009: an overall net loss for the first three quarters of:

Net Loss $ (1,103,798) or only $ (367,933) of avarage net loss per quarter, a tenth comparing to last year and most of it is from the first quarter!

As we could see the company's trend has clearly changed direction since the second quarter and i'm sure that last quarter data will confirm this. We'll have the 2009 annual report at the end of March and i think this stock is going to fly very soon and maybe raise even before the end of March as more people realize the potential in this company which is quoting under its cash per share value.

Quote:

Mr. Hudkins continued: "Looking forward, we will seek to be opportunistic about growing the revenues at both Twincraft and Silipos. We are currently in the process of adding new salespeople to our Silipos' field team. We believe this will increase our presence with our distributors and provide them with greater support. In addition, we are excited about our new line of Gel-care scar management products. In October 2009, we received our first purchase orders from distributors for these patent-pending scar management products. We believe we will begin to see contributions to our revenue as we launch and expect to promote this unique product to targeted markets throughout 2010. We have received Investigational Review Board ("IRB") approval and are proceeding with a clinical study on this new line of products to better substantiate the efficacy of the product. The results of this clinical study are expected to be available in the Spring 2010."

Undoubtedly an exciting opportunity

pcgr...new for strong buy