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To: WorthaDeeperLook who wrote (1318)11/12/2015 11:31:43 AM
From: ayeyou  Read Replies (1) | Respond to of 1728
 
I agree , getting that plant finished and having a smooth transition into production there is critical. I like their plan to stockpile a years supply of product despite inventory costs because they have to protect their reputation as a reliable supplier to the cosmetics customers. The fact they pull a 70% gross on the product will help limit the cost of holding a years inventory.
With a little success in marketing product in the medical sector and possibly getting an exclusive deal with Pepsico for the avenanthramides they produce could push sales well beyond current levels and also insure that they remain consistent.

There has to be an underlying reason that the additional 10,000 sq ft was deemed necessary considering they were already so far along with the original plans. What that reason is must be more then pure speculation that they might need the extra production area.

I fully expect to see current share price back off in a few days to a month and tax loss time is when I will be looking to double up on my position. All that being said I have been a buyer today as well as Jorjen.