CZO: Short-sighted clueless myopic retail investor VS Facts It is an interesting lesson for me to observe 2-3 shockingly short-sighted, extremely myopic, amazingly clueless retail investors here on the CZO board. Thanks to them, I make money. Thanks to them, I steal CZO's shares at ridiculously low prices and will sell them much higher than 70 cents.
Actually, I do believe the aforementioned retail investors have sold their shares and have lost money, this is why they keep being here twisting the truth. They can't swallow it. They can't gloss over it. Human nature.
They sold because they were extremely short-sighted, they were unable to see the facts below. Instead, they focused on OBG despite also the fact that CZO has other strong catalysts and growth drivers associated with:
1) Its solid base business
2) YBG 3) Avenanthramides
4) The ongoing engineering design for PGX processing commercial unit The facts about CZO: 1) Ceapro remains a profitable business with revenue YoY growth and sequential growth.
Specifically, Q3 2021 record sales of $4,523,000 compared to $3,476,000 for Q3 2020, representing a 30% increase, while net profit of $875,000 for Q3 2021 versus net profit of $192,000 for Q3 2020, a 356% increase.
2) Increased net profit for the third quarter of 2021 comes from improved margin of 65.2% as compared to 47.8% in 2020.
3) Ceapro maintains a fortress balance sheet with zero cash and a lot of cash to fund both organic growth and inorganic growth (acquisitions).
4) With CAD$7.3 million cash and zero debt, Ceapro's Enterprise Value currently is just CAD$35 million.
5) Given that adj. EBITDA in 2021 will be about CAD$5.5 million, CZO trades only 6 times its adj. EBITDA.
The peers trade above 10 times their adj. EBITDA and many of them lose money.
6) With CAD$18 million in annual revenue,
CZO trades only 2 times its revenue. The peers trade above 4 times their revenue and many of them lose money.
7) CZO is a takeover target and there is no question about it.