Zen Money News – Issue 041
Today’s Hot Penny Stock – Cyanotech Corp. (CYAN)
Bob Harper, Managing Editor, The Zenect Wealth Report
On The Radar Report
Consumer goods market researchers have, for years, tracked and studied the rapid rise of the nutritional supplement market. According to market researcher Packaged Facts, the nutritional supplement market in the U.S. hit $11.5 billion in sales in 2012. They estimate the market to hit $15.5 billion by 2017. Packaged Facts suspects a desire for less-costly alternatives to traditional medicine to be the catalyst for this growth. Regardless of the motivation, the numbers don’t lie.
QUICK FACTS
Ticker CYAN
Industry Biopharmaceuticals
Recent Price $6.02
Market Cap $32.9 m
Shares Outstanding 5.5 m
Average Volume 3,723
Dividend Yield N/A
Website http://www.cyanotech.com/
COMPANY DESCRIPTION
Cyanotech Corp. (CYAN) is a Hawaii based company producing two classes of microalgae based organic nutritional supplements, Spirulina Pacifica® and BioAstin®. The former is rich in protein, beta-carotene, B vitamins, and a host of other phytonutrients. The latter is an antioxidant H-bomb with 550 times the concentration of vitamin E.
The benefits of deriving supplements from microalgae are multi-fold:
- Microalgae grows up to 100 times faster than land based plants
- Uniform cell structure – meaning no leaves, bark, or stems – greatly simplifies production
- This uniformed nature allows for a more practically controlled growing environment
FINANCIALS
CYAN’s annual numbers were released on June 24, 2013.
The company reported revenue of $6.9 million in the most recent quarter. Up from last year’s fourth fiscal quarter revenue of $6 million. This is an increase of 15.2%. Cyanotech Corp. also reported a net income of approximately $2.6 million… a year-over-year increase from a net income of $1.2 million.
As of March 31, 2013, the company reported $4.4 million in cash and $5.5 million in long-term debt.
KEY METRICS ANALYSIS
Trailing P/E 8.1 x
Price / Sales 1.2 x
Return on Assets 9.2 %
Insider ownership 36.2 %
Short Ratio 1.1 x
Current Ratio 4.2 x
Total Debt to Equity 27.6
RECENT EVENTS
Cyanotech has been in the process of transitioning from a bulk ingredient supplier to a company that produces and markets its own consumer products. Over the past year their consumer products business, Nutrex Hawaii, has seen significant sales increases.
- 54% sales increase in the 48 contiguous
- 81% direct online sales increase
- 105% international sales increase
The company is in the process of expanding production and building out additional infrastructure for its consumer facing offerings.
MANAGEMENT TEAM
Michael A. Davis – Independent Chairman of the Board
Walter B. Menzel – President of the WM Group
Brent David Bailey – President, CEO, Director
Jole Deal – CFO, Vice President – Finance and Administration, Treasurer, Secretary
Gerald R. Cysewski Ph.D. – Chief Scientific Officer, Executive Vice President, Director
STOCK ANALYSIS
Chart Courtesy of StockCharts.com
CYAN’s 52-week low was $4.21 and the 52-week high was $6.70. Right now the stock is trading at $6.02. The 50-day moving average is near $6.13 a share and the 200-day moving average is at $5.17. The company has a market cap of $32.9 million and 5.5 million shares outstanding.
*All ratios and figures updated on 8/09/13
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