Friday, November 19, 2010

Rawnoc speculates Pak-It & Javaco are about to become profitable

PAKIT & JAVACO looks about to make some bucks....

Q1 2010 Net loss = ($645K)
Q2 2010 Net Loss = ($500K)
Q3 2010 Net Loss = ($25k) <~~~95% reduction over the Q just prior

Looks to me like a bottom line improvement of $475,000, reducing the net loss by 95% in a single sequential quarter basically down to nothing. Looks like the "trend" is headed for +$300k net income for PAKIT for Q4 2010, despite "many US-based transactions are accounted for through Pak-It resulting in an increase in expenses associated with Pak-It that would not otherwise be incurred by the operating unit."

Looks like Javaco's whopping $5,000 loss will be turned into a profit for Q4 as well, making both segments of Javaco and PAKIT profitable for Q4 -- something not even the most optimsitic among us seemed to expect if I recall. :)

"The Company uncovered inefficiencies in Javaco’s operations and consolidated some of the workforce at this subsidiary in order to improve performance and working capital turnover. Javaco is now being focused towards higher profit margin sales, and the Company is identifying these customers and tailoring an integrated sales approach that we expect will improve this subsidiary’s earnings."

Looks like Javaco & PAKIT will easily be profitable and just P2O is at a loss because they're not selling fuel yet of course.

2 out of 3 business producing a net income while their 3rd is about to be launched is not too shabby. That's probably why they have access to loans.


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