Mission Produce Inc T.AVO

RE:RE:Are We in for a Bigger Surprise then Anyone has Anticipated

[abolduc3106]

I'm sticking with my latest prediction which was Q2 revenue of $72.8M from $39.2M in 2013, up 85.8%, and a beat by 8.5%, with an even bigger uptick on earnings, but when you look at the Q/Q increase in raw materials and WIP inventory, it does pose some interesting questions, added to the fact that Avigilon has beat analysts estimates a lot more often then not since going public.

It's not as if they were sitting on a pile of finished goods they needed to liquidate, which would be a completely different story. They bought a lot of stuff in order to make a lot more stuff, which would lead one to believe they wouldn't have that sitting around and gather dust for very long, unless they got the components dirt cheap which, as I said, could also explain part of it, but that's also positive since that would mean margins going up as those components get used up and sold as part of finished product..

Other recent information worth considering

1) The installed portion of City Surveillance contract featured in a recent Case Study is probably worth a couple of million to the integrator who got that contact all on its own - oggie should be happy now, lol- , based on recent MSRP info availble on the web, not including installation costs, and I don't believe they've had a deal this of this size before, especially when you factor in the additional 5400 cameras, plus other hardware/software needed to support them, in addition to add to the 1600 5.0MP bullet cameras and other equipment/software that were already sold and installed. I'm guessing the total value of that project alone will probably be in the $7-10M range, once all is said and done and volume discounts, etc... are factored in. And, typically, showcasing that type of project also lead to others.

2) Avigilon's part in securing the stadium in Glasgow, Scotland for this year's Commonwealth Games, which was alluded to by Avigilon's RSM when that kicked off a few weeks back.

3) Fidelity's $20M investment in Avigilon stock during Q2.

Not to mention all the other anecdotal evidence that as surface recently and that I've posted about.

The only question I mght have is about the timing of the ordering and shipping for those two large contracts we found out about recently.My assumption is Q2, but it could also be Q3.

What I do know is we will be finding out more about all of these, and probably a lot more, tomorrow, either with the report or on the conference call .

GLTA