Captiva Verde Industries Ltd ARDWF

dsark's Q2 targets (take with a grain of salt)

[dsark]

There were some things in Q1 that should not happen again.  

1.  Their management team is assembled as is their board of directors.  Stock compensation (options) was $1.26M in Q1.  So far in Q2, they only announced 500,000 in stock options for Ted Mills, COO on May 1, 2016.  This is $127,500.  So hopefully no more stock options in Q2.

2.  Spot sales look like they were a big part of Q1 as we can see by the cost of sales.  Jeff has said they are only growing what they have guaranteed sales for starting March 28, 2016.  So the spoilage should be history (hopefully).

3.  June to August are the months that Imperial Valley & Central Arizona are offline, both start up again in September.  Tehachapi sounds like it's a go for June 2016.  It provides about 160,000 lbs per week for those 3 months.  

So by my calculations I see about 2.9M lbs in contract sales for Q2.

My estimates for Q2

$4.6M in revenue 
$3M in cost of sales (65% of sales)
$1.6M in gross profit (35% gross margin)
$0.94M in operating costs (G&A, marketing costs, depreciation & share price compensation)
$0.67M in operating income

This puppy really kicks into overdrive starting in September (end of Q3).  

I believe this company is just going to start being a machine as it churns out profits.  Between expansion, more contracts, & acquisitions this puppy will be a major growth story.

 Disclosure: I'm long & strong.  Do your own due diligence.