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Beacon (OTC BB: BEAC) Turns
On High Beams With Q1 Results |
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This doesn't have to be a long edition.
It's pretty simple stuff, and easy enough for anyone to understand. Beacon
has found itself one heck of a powerful niche in the whole enterprise world
for large corporations, and their growth rate it probably as good as any
domestic company in the US today.
You were tipped off first, and you
should make money for having the information early on. Sometimes these
things take some time to gel in the market before being fully reflected
in the stock price. Wal Mart (NYSE: WMT) was about $5 at its IPO in 1990.
Despite growing rather rapidly for the next several years, the stock was
only about $12 in 1997. It was $70 two years later. The stock traded
flat for 7 years while the company grew in leaps and bounds, then rocketed.
BEAC probably won't take that
long. After all, information flows far more easily these days. Today, after
the market closed, BEAC released its fiscal Q1 numbers (December
quarter), and they were as I predicted, dramatic. The giant contracts with
Johnson & Johnson (NYSE: JNJ) and the European networking company are
kicking in, and this is just the beginning.
Let's get straight to it:
-
The Top Line Revenues: Only up 376%
over the same quarter last year. Monstrous. Revenues were $8.6 million
for the quarter, up from $1.8 million the year before, and double Q4 of
'09.
Remember, BEAC achieved
$10 million in fy'09. Now, the company has hit $8.6 million
in Q1 alone. That's mega growth.
-
Gross profits improved by 264%
to $1.8 million, up from $485K the same quarter a year ago.
The gross margin percentage was down
a bit, which might be interpreted as a minor negative, the but the actual
number was way up, a major positive- The company commented margin percentage
will be improving- was it enough for them to make money?
-
EBITDA- which is generally how companies
try to portray the health of their business after taking out all the accounting
funny money charges, was positive for the first time in their history.
The have an EBITDA gain of $244k.
Personally, I'm not a big fan of EBITDA
as a true measure of financial health. I prefer cash flow from operations,
which was likely positive as well. After you take away all the non cash
charges and one time only expenses, do you have more cash than you spent?
That's what I want to know. Once I've studied the 10Q, I'll have a pretty
good idea.
-
Then there's the balance sheet- assets
vs liabilities. Their cash position improved quite dramatically from $264k
at end of last quarter to $2.6 million, along with strong
growth in current assets and shareholders equity. Nothing to not like here.
The release does not specify the current
number of shares I&O. I'll get it from the 10Q when I can. On December
10th, there were 28.3 million I&O- at today's closing price it's a
mere $30 million market cap. It's worth at least twice where it's
trading now in my view.
Technically, I only have one comment
on this stock. It's probably going to gun for the previous high of about
$1.35-
up 50% from my initial entry level of $.90.
A break through $1.35
would represent a huge technical message- all clear on the Western Front,
and higher levels ahead with obviously some surges and pullbacks.
This could be a big week for this
stock. There's a lot going on. If you want to learn more first hand, and
formulate your own evaluation of this company's future, simply dial into
tomorrow's conference call at 10AM Eastern, 7AM Pacific. Call 888-495-3916
and enter conference ID # 56695237.
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