Stormy Market Ahead

Courtesy of www.listdose.com via Google Images.
Courtesy of www.listdose.com via Google Images.

Hesitation and anxious nerves over when the Federal Reserve will start to taper its bond purchases and the potential spike in interest rates hitting the market this fall, it could cause choppy waters in the market this week. Monday’s market closed with the Dow and S&P 500 achieving their first four-day losing streaks this year, having now decreased nearly 4 percent since each hit their all-time highs at the beginning of August. To read more analysts opinion on where the market will go, read the full article HERE.

Judge Affirms Fraud Law Against Banks

Courtesy of www.radiboy.com via Google Images.
Courtesy of www.radiboy.com via Google Images.

 

U.S. District Judge Jed Rakoff in New York has endorsed the Financial Institutional Reform, Recovery, and Enforcement Act (FIRREA). The most recent decision happened last October in a case brought against Bank of America by the Justice Department. The government claims that mortgage programs used by the bank empire sped up certain home loan processes by removing critical checkpoints, which resulted in thousands of defective mortgages. To get all the details on the trial set for September 23rd, click HERE.

It Doesn’t Get Much More Renewable than Algae

Zen Money News –  Issue 041

Today’s Hot Penny Stock – Cyanotech Corp. (CYAN)

Bob Harper, Managing Editor, The Zenect Wealth Report

On The Radar Report

Consumer goods market researchers have, for years, tracked and studied the rapid rise of the nutritional supplement market. According to market researcher Packaged Facts, the nutritional supplement market in the U.S. hit $11.5 billion in sales in 2012. They estimate the market to hit $15.5 billion by 2017. Packaged Facts suspects a desire for less-costly alternatives to traditional medicine to be the catalyst for this growth. Regardless of the motivation, the numbers don’t lie.

QUICK FACTS

Ticker                                     CYAN

Industry                                 Biopharmaceuticals

Recent Price                           $6.02

Market Cap                            $32.9 m

Shares Outstanding              5.5 m

Average Volume                    3,723

Dividend Yield                       N/A

Website                                  http://www.cyanotech.com/

COMPANY DESCRIPTION

Cyanotech Corp. (CYAN) is a Hawaii based company producing two classes of microalgae based organic nutritional supplements, Spirulina Pacifica® and BioAstin®. The former is rich in protein, beta-carotene, B vitamins, and a host of other phytonutrients. The latter is an antioxidant H-bomb with 550 times the concentration of vitamin E.

The benefits of deriving supplements from microalgae are multi-fold:

  1. Microalgae grows up to 100 times faster than land based plants
  2. Uniform cell structure – meaning no leaves, bark, or stems – greatly simplifies production
  3. This uniformed nature allows for a more practically controlled growing environment

FINANCIALS

CYAN’s annual numbers were released on June 24, 2013.

The company reported revenue of $6.9 million in the most recent quarter. Up from last year’s fourth fiscal quarter revenue of $6 million. This is an increase of 15.2%. Cyanotech Corp. also reported a net income of approximately $2.6 million… a year-over-year increase from a net income of $1.2 million.

As of March 31, 2013, the company reported $4.4 million in cash and $5.5 million in long-term debt.

KEY METRICS ANALYSIS

Trailing P/E  8.1 x

Price / Sales  1.2 x

Return on Assets  9.2 %

Insider ownership  36.2 %

Short Ratio  1.1 x

Current Ratio  4.2 x

Total Debt to Equity  27.6

 

RECENT EVENTS

 Cyanotech has been in the process of transitioning from a bulk ingredient supplier to a company that produces and markets its own consumer products. Over the past year their consumer products business, Nutrex Hawaii, has seen significant sales increases.

  • 54% sales increase in the 48 contiguous
  • 81% direct online sales increase
  • 105% international sales increase

The company is in the process of expanding production and building out additional infrastructure for its consumer facing offerings.

 

MANAGEMENT TEAM

Michael A. Davis – Independent Chairman of the Board

Walter B. Menzel  – President of the WM Group

Brent David Bailey – President, CEO, Director

Jole Deal – CFO, Vice President – Finance and Administration, Treasurer, Secretary

Gerald R. Cysewski Ph.D. – Chief Scientific Officer, Executive Vice President, Director

 

STOCK ANALYSIS

CYAN

 

 

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

CYAN’s 52-week low was $4.21 and the 52-week high was $6.70. Right now the stock is trading at $6.02. The 50-day moving average is near $6.13 a share and the 200-day moving average is at $5.17. The company has a market cap of $32.9 million and 5.5 million shares outstanding.

*All ratios and figures updated on 8/09/13

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Editor’s Pick 

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