BrandPartners was out with news pre-open on Wednesday morning, and the news provided a nice little rally for the stock on the best volume we have seen so far this year.
The company announced it had signed $4.5 million in new contracts. While this is nice news, it is actually fairly routine for BPTR. I scanned the news release, looking an indication some of the news business was for Graffico or BPTR Europe, the two cash drain divisions on the company.
As it turns out, Graffico did contribute a part of the new business. BPTR Europe was not mentioned, much to my disappointment.
However, there was one unexpected surprise in the news release. Here’s the text:
��“We are continuing to execute our growth strategy within our core business and anticipate stronger revenues and increased profitability in 2006,” said James F. Brooks, President and Chief Executive Officer of BrandPartners. “We believe our pipeline is strong as a result of our increased marketing efforts, so consequently we are focused on converting opportunities to bookings.”
Stronger revenues and increased profitability in 2006? I believe the phrase “increased profitability” is what the market liked.
The stock has now come a little off the $.40 bottom it had been camped on for the last month, albeit just by 10%.
Here’s a look at the chart:
To read the entire text of the press release, click here.
I have been looking for a signal to double up on this one. Here’s the way I am hoping to play it- I believe I will wait for the year end numbers to come out. I am expecting Q4 to be roughly akin to BPTR’s weak Q3 numbers.
I am hoping to see the stock swoon a bit on year end numbers, which I will view as a buying opportunity.
I am still holding 100,000 shares with a cost basis of $.60. I believe BPTR should get earnings traction again in ’06 and I want to double up. A little pullback on weak year end numbers could conceivably provide just the opportunity.
Comments and questions are welcome.