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To: jorjen who wrote (1317)11/12/2015 11:13:02 AM
From: WorthaDeeperLook  Read Replies (1) | Respond to of 1728
 
I just have a few concerns on how they will finance the new plant extension. They already have lots of debt on their balance sheet.

Plus, relocating production to a new plant could slow down growth while they ramp up production there. Management intend to build up inventory to prevent any disruption in the supply of current customers, but that will put some stress on the balance sheet too.

They had a great quarter, but sales are lumpy and only grew 6% yoy in the first nine months.

I think Ceapro has a bright future. However, I would be cautious not to overpay. The risk-reward profile isn't much different than it was when the company was trading in the low 0.20$... A few news releases about their pipeline and a record quarter in (lumpy) sales) brought new eyes to the story and the renewed momentum is encouraging... but don't overpay!

When the new plant will be finished and fully operational, then the thesis will be significantly de-risked imo.



To: jorjen who wrote (1317)5/10/2016 12:35:23 PM
From: ayeyou2 Recommendations

Recommended By
El Canadiense
jorjen

  Read Replies (1) | Respond to of 1728
 
Well jorjen looks as if our faith in CZO has been rewarded. It is tearing it up on the charts and since Euro Conference on Supercritical Fluids it is up from .75 to .92 . Sweet being in since mid to high 20s . Apparently someone was impressed by CZO presentation at that conference. This one still has all the catalyst we spoke of last fall in the wings. My target is $1.50 by year end. Earnings have been swelling and $2 mil dollar earnings quarter could be in the cards soon.