Hello Friends! I hope all of you had a wonderful Holiday. I guess wonderful is not about getting gifts or anything like that...although I am not opposed to getting them!...but maybe spending some time with family and loved ones. Even more important than a big move in the Market! As always, please remember to consult with your investment advisor before using any information on this website for investment decisions as the stocks presented may or may not be suitable for your particular situation!
I came across this one this morning, and getting a second over the lunch-hour thought I would present it to you! I do not own any shares of this company nor do I plan to in the near future. Matrixx Initiatives (MTXX) is having a nice day today trading as I write at $18.28, up $1.17 or 6.84% on the day. According to money.cnn.com, MTXX "...researches, develops, manufactures, distributes & markets products in the nutrient & drug delivery systems market." Looking at the Matrixx website, it appears that most of their business is related to the "Zicam" cold remedy product and its spin-offs. I am not very familiar with this product. If you happen to know much about it, please feel free to comment on this site.
Looking for their latest quarter results, I found on Yahoo dated October 22, 2003, the results from their third fiscal quarter ended September 30, 2003. This was picked up from PRNewswire-First Call. Net sales were up 163% in the quarter to $13.4 million from $5.1 million in the same quarter in 2002. Net income was up dramatically as well at $2.8 million or $.29/share vs. $1.0 million or $.11/share in 2002.
Looking at Morningstar.com for some longer-term data, I found on the "5-yr restated" financials, that MTXX had virtually no revenue in 1998, $10 million in 1999, $11 million in 2000, $16 million in 2001, $24 million in 2002, and $29 million in trailing twelve months. Actually, extrapolating the current quarter's revenue (as noted in the previous paragraph) of $13.4 million, would get us over $50 million in revenue/year at its current level.
Earnings/share have been erratic, with the company losing money through 2000, then turning positive at $1.36/share in 2001, dropping to $.50/share in 2002, and $.44 in the trailing twelve months. However, extrapolating the current quarter, if this continued, would get us over $1.00/share currently.
Free cash flow which was $(6) million in 2000 and 2001, improved to break-even at $-0- for 2002. Nothing exciting, but I will take any improvement as a positive and at least the company is not bleeding its cash position at this time.
Speaking of which, the balance sheet on Morningstar.com looks at least quite solvent with $8.8 million of cash reported on hand, more than enough to cover the current liabilities of $5.3 million and the long-term liabilities of $100,000. In addition, MTXX is reported to have $6.3 million in other current assets.
Looking at "key statistics" on Yahoo.com, I found that the market cap is a small $171.37 million. The trailing p/e isn't bad at 28.84...but no PEG reported...probably not many analysts out there following this one with estimates for the next year.
There are 9.42 million shares outstanding with 9.40 million of them that float. Currently there are only 228,000 shares out short representing 2.43% of the float or 1.326 trading days of volume. These figures are from Yahoo as of 12/8/03.
No dividend is paid and no stock splits reported on Yahoo.
If you want a small company with dynamic growth, this might be your pick. However, I am always concerned about small companies with a limited product line, so I tend to exercise more caution. It is an interesting pick for the day and I look forward to seeing how this will perform in the future!
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