Wednesday, December 9, 2009

Buy The next growth stock - CYAN

Cyanotech Corp (CYAN) - Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae worldwide. It offers BioAstin natural astaxanthin, a dietary antioxidant for use as a human nutraceutical and functional food ingredient to support and maintain the body's natural inflammatory response, as well as to enhance skin, muscle, and joint health. Read more about CYAN here. Here are some of their products if you are familiar with, Please click here

CYAN Revenues for the second quarter of fiscal 2010 increased 20% to $3,925,000, compared to revenues of $3,274,000 for the second quarter of fiscal 2009. Gross profit was $1,762,000, with gross profit margin of 45%, in the current quarter compared to a gross profit of $1,378,000 and gross profit margin of 42% reported for the same quarter in 2009. Net income increased 267% to $599,000, or $0.11 per diluted share, compared to $163,000, or $0.03 per diluted share for the second quarter of fiscal 2009.

Management's comments:
"These results affirm the company’s strategy of focusing on and building sound business fundamentals throughout the organization,” said Andrew H. Jacobson, President and CEO. Improved production levels increased inventory, allowing better customer service. Continued cost containment delivered margin growth. Sustained high quality continued our nutritional leadership and our dedicated employees made it all possible."

"Sales of both of Cyanotech’s core products, Spirulina Pacifica® and BioAstin® Natural Astaxanthin, grew during the second quarter. The Company again delivered margin growth, resulting in higher income from the increased sales."

"We are looking forward to the complete roll out of our new Nutrex branding in the second half of 2010 and the introduction of a number of innovative products featuring Hawaiian Spirulina Pacifica® and BioAstin® Natural Astaxanthin," concluded Mr. Jacobson.

Analysis: This is a tiny float stock with huge potential to double from here. It owns famous suppliment drug brands like Nutrex, Hawaiian Spirulina, BioAstin etc..that you see in Costco and other wholesale shops. It is in the same line of business as CHBT (alerted on 06/09) but with huge upside potential. IBD Composite Rating for CYAN is 99, which is excellent!!

Buy before it is too late! I entered it at $4 and am expecting a nice return in short to medium term.

Today's Range 3.91- 4.13 52-Week Range 1.10 - 4.35
Shares Outstanding
5.25 Mil Float
3.75 Mil
Quarterly Sales % Chg
Market Cap $20.00 Mil
Quarterly EPS % Chg267% 3-Year Sales Growth Rate16%
Quarterly Gross Profit
Margin %
42% Price % Chg. Last 4 Weeks 39%

Key Statistics from Yahoo Finance -

A general Caution and Advise-As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

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Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!