No. of Recommendations: 12
Here's the link: http://biz.yahoo.com/e/090819/ygii.ob10-q.html

Highlights include an incredible 163% yoy increase in sales (to $46mm in the quarter) and a 46% increase in net income (to $11.4mm) (the reason for the big drop-off is that the company actually the full 25% tax rate this year, compared to close to zero in the year ago period). The company should easily achieve its full-year guidance of $82mm in sales and $22mm in income.

Lowlights are a massive increase in receivables (to $36.5mm) alongisde no real q to q decline in inventories, which I had been hoping to see. Now, the company is forthright that its distributors have 90 days to pay, so, as we did with CGA, we have to go through a cycle with them to hold them to their word, but it's one thing we want to watch going forward. Further, I'd like to see those inventories start to move a little faster off the books. But we'll get more insight into both of those things as the growing season concludes in Qs 3 and 4.

In the meantime, should the company collect on these receivables and deliver on its guidance, we should see $15 in cash generation and an $8 stock based on a 10x earnings, which is easily achievable should the company uplist as it seems like it's planning to do.

Conf. call is Friday morning. More notes then.

Tim
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