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Old 05-30-2016, 06:37 PM   Nav to Top  #11
JonnyR512
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Sunora Foods Inc. Q1 2016 Results (Ending March 31st 2016)

NOTE: Keep in mind that Q4 2015 and Q1 2016 had some one time issues with regards to logistics, back-orders and currency fluctuations. Otherwise, as stated in the news today, Q2 results and beyond will be much better.

Price: $0.12
Common Shares: 42,254,332
Insider Holdings: 72% As per SEDI

Financial

Assets
Cash: $2,981,812 - $0.07c a share just in cash
Accounts Receivable: $989,160
Inventory: $607,523
Prepaid Expenses: $18,419
Deferred Tax: $147,974
Total Assets: $4,744,888

Liabilities
Accounts Payable: $936,008
Income Tax: $48,940
Customer Deposits: $63,734
Total Liabilities: $1,048,682

Q1 2016 Net Income: $24,871
2015 Total Net Income: $502,182
2014 Total Net Income: $189,073

Breakdown in sales distribution for Q1(in MD&A)
USA: $2,167,415 (Last year was $1,785,591) – Increase by $381,824
Canada: $235,713 (Last year was $275,451) – decrease by $39,738
International: $248,251 (Last year was $682,925 – Shipping issues for the quarter caused discrepancy)

MD&A Highlights

The $24,971 of net income and comprehensive income in the three months ended March 31, 2016 was lower than the same quarter of 2015. This was primarily as a result of a foreign exchange loss of $82,655, as opposed to a foreign exchange gained $131,013 in the prior year. In addition, sales were slightly lower, and the gross margin declined from the prior year as a result of delivery issues with a copacker.

Sunora's current assets consist of cash, accounts receivable, prepaid expenses and inventory. Cash is held for working capital requirements and to fund expansion costs for new markets and customers. A policy of conserving cash is rigorously followed by management in order to sustain operations and not hamper its marketing strategies. Accounts receivable is in a comparable range to that of December 31, 2015, due to continuing efforts by management to control the Company’s credit and collections. The increase in inventory is due to increased bulk oil purchases in anticipation of future sales.

Sunora's current liabilities consist of accounts payable and accrued liabilities, income tax payable and customer deposits. Accounts payable increased by $467,782 since December 31, 2015, due to increased bulk of oil purchases at the end of this quarter. Nevertheless, Sunora is committed to its policy to manage its trade payables on a current basis and maintain its excellent credit standing.

The Company's target Working Capital Ratio (Current Assets divided by Current Liabilities, which is an indicator of its ability to finance its on-going operations) is 2:1. Current Assets comprise cash, accounts receivable, prepaid expenses and inventory; current liabilities include accounts payable, accrued liabilities and income taxes payable. The amounts of accounts receivable, inventory and accounts payable and accrued liabilities at a point in time are the direct result of sales and purchases and how the Company manages collections, supplier credit and inventory levels, which in turn is manifested in the available cash. At March 31, 2016, the Working Capital Ratio has declined to 4.4:1 compared to 6.75:1 at December 31, 2015.The Company's business has been managed with a strong working capital position which has enabled the Company to operate without debt. Additionally, the current nature of Sunora's operations has enabled it to expand without making capital investments. Therefore, the Company believes it is in a very favourable position to expand in the future.

The Company operates in the single segment of food oil. Competition is always a significant factor in the food oil industry. The Company determines the geographic location of revenues based on the location of its customers. The geographic categories presented are the United States, Canada and Other; other comprises various regions in South America, Africa, Asia, the Middle East, Eastern Russia, Australia and New Zealand.

The Company had an economic dependence on one customer. During the three months ended March 31, 2016 and the three month period ended March 31, 2015, sales to this customer represented approximately 21% and 13% of the Company's total sales, respectively. Sunora's sales to the United States have recently trended higher in proportion of sales in Canada. Overseas markets are generally continuing to grow and provide greater long term stability to sales. The growth of sales in emerging markets, where awareness of healthy food choices is growing as a result of the expanding middle classes, is a positive trend for Sunora.

Cost of sales consists of purchases of crude and refined oil, freight and custom duties. Sunora achieved a gross margin of 9.4 % in the three months ended March 31, 2016, which varied due to delivery issues with co- packers, compared to 11% in the three months ended March 31, 2015. These margins were within an expected range.

Outlook

Sunora maintains strong relationships with strategically located customers in North America and overseas. These relationships continue to drive demand for food oil products from Canada, with Sunora well positioned to meet existing and additional demand. Management has focused on increasing visibility in emerging markets, with a specific focus on the economies in Asia, with a view to meet this increased demand for Canadian manufactured food oil products. Sunora’s operations are impacted by geopolitical situations that may hold up deliveries as was experienced in the last quarter of 2015. As the middle class in these emerging economies demands higher quality and healthier foods, Sunora is well positioned to meet additional demand.

Management is actively identifying and analyzing operations that might increase gross margins for the Company. Prospective businesses considered include packagers and suppliers in the food oil industry. With each operation identified, a detailed review and analysis is undertaken by management. Specific focus is currently on packagers with operations in Canada that are looking for a strategic partner to expand international operations. Management is also actively considering possible new products that may benefit from new domestic and international markets. With the continuing improvement in the United States economy and new customers being added in Asia Sunora is well placed to improve its profitability and financial position.
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Old 05-31-2016, 05:05 AM   Nav to Top  #12
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Originally Posted by JonnyR512 View Post
NOTE: Keep in mind that Q4 2015 and Q1 2016 had some one time issues with regards to logistics, back-orders and currency fluctuations. Otherwise, as stated in the news today, Q2 results and beyond will be much better.
What makes you think those issues were one time and won't repeat in Q2? Not like currency can't fluctuate again, for example.
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Old 05-31-2016, 05:26 PM   Nav to Top  #13
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Default SNF Q1 Results

Originally Posted by fedorpetrov View Post
What makes you think those issues were one time and won't repeat in Q2? Not like currency can't fluctuate again, for example.
With regards to the shipping issues, it says that sales have increased in Q2 and will continue to do so in the future. I also spoke with management and they said it was a one time issue.

Bottom of news release:

Sunora's Q1 2016 financial results were negatively impacted by a brief slowdown in demand from international customers due to economic restructuring, as China reorients from manufacturing to domestic consumption and from delays in shipments. International sales have trended upward in Q2, with expected additional sales during this period and beyond.

With regards to the currency, you can see from this chart that the CDN/US has dropped back to lower levels that are on par with the same exchange rates from SNF's Q1-Q3 results that created three strong profitable quarters.

Canadian Dollar | 1972-2016 | Data | Chart | Calendar | Forecast | News

So the CDN dollar is getting stronger, logistics problem is figured out, the company even stated that things would get better. This is very bold and I've rarely seen it because if it's not true then they could get caught in some sort of litigation from it. If SNF's worst quarter is net income of $25,000, then they will continue to add cash to the bank and eventually that has to get used up somehow. Perhaps a share buyback, dividend, who knows.

Another thing to mention is how the Canadian dollar is tied to commodity prices. With oil coming back and gold still around the $1200 range, this will help keep the CDN/US exchange in this range. Sure if the US raises rates, that will reduce the CDN dollar buying power, but not by much.
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Old 06-01-2016, 08:00 AM   Nav to Top  #14
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Okay, I see, it makes more sense now. Guess you're right, even in the worse case - US raising rates - SNF's Q2 won't suffer too much. Well, that and if China doesn't get accustomed to delaying shipments...
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Old 06-01-2016, 10:45 AM   Nav to Top  #15
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Default SNF Q1 Results

Originally Posted by fedorpetrov View Post
Okay, I see, it makes more sense now. Guess you're right, even in the worse case - US raising rates - SNF's Q2 won't suffer too much. Well, that and if China doesn't get accustomed to delaying shipments...
Yeah I'm not too worried. Obviously it would of been great to have seen a stronger Q4 2015 and Q1 2016 because the stock price would of reflected it. But cash is still increasing and now we just need to wait for Q2 results. I also asked them what they are going to do with the cash and suggested a dividend or share buyback, apparently they are looking into both. No point for them to sit on a huge cash pile. They could spend $500,000 and do a 10% share buyback and then $500,000 for a 1.2c dividend and there would still be $2 million left to work with. SNF's liabilities are all payables around $1 million, so deduct that and $1 million free cash after all that.
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Old 06-01-2016, 11:55 AM   Nav to Top  #16
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Originally Posted by JonnyR512 View Post
Yeah I'm not too worried. Obviously it would of been great to have seen a stronger Q4 2015 and Q1 2016 because the stock price would of reflected it. But cash is still increasing and now we just need to wait for Q2 results. I also asked them what they are going to do with the cash and suggested a dividend or share buyback, apparently they are looking into both. No point for them to sit on a huge cash pile. They could spend $500,000 and do a 10% share buyback and then $500,000 for a 1.2c dividend and there would still be $2 million left to work with. SNF's liabilities are all payables around $1 million, so deduct that and $1 million free cash after all that.
Which kind of makes me wonder why they haven't done this earlier...
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Old 06-02-2016, 01:48 PM   Nav to Top  #17
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Default SNF Q1 Results

Originally Posted by fedorpetrov View Post
Which kind of makes me wonder why they haven't done this earlier...
From what I gathered from their IR department, the focus has been on expansion into Asia first and then getting other stuff sorted. Makes sense since that Chinese company bought 19% of the stock less than two months ago. If they did a share buyback and dividend, price would of rose for sure.

Looks like a nice block is for sale between $0.12-$0.13, just over 1% and then after that nothing else until much higher prices. Somebody must of thought the quarterly was bad, which in my mind it wasn't at all.
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Old 06-07-2016, 10:54 AM   Nav to Top  #18
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Some good volume this morning and SNF popped to an all time high of $0.175, highest since the IPO in 2014. Stock has been undervalued all year given it's large cash position, clean balance sheet, heavy insider ownership of 71% and world growth chart. Below is the level 2, not much for sale anymore.

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
10,000 0.120 0.175 4,000
25,000 0.115 0.250 5,000
61,000 0.110 -- -- --
25,000 0.105 -- -- --
26,000 0.100 -- -- --
4,000 0.085 -- -- --
1,500 0.075 -- -- --
5,000 0.045 -- -- --
5,000 0.040 -- -- --
6,000 0.035 -- -- --
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Old 07-16-2016, 11:26 AM   Nav to Top  #19
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Despite lack of news and Q2 results coming out in 6 weeks, Sunora has been busy promoting the brand throughout North America in a March 2016 article and June 2016 show. Keep in mind that this came out before the Chinese investor purchased 19% of the stock(April 2016) which tells me expansion in Asia has likely increased since then. The Q1 news release even stats that sales are for sure going to be higher in Q2, so only positive notes going forward.

June 2016 Minneapolis Exhibit: http://www1.agric.gov.ab.ca/$Depart.../$FILE/2016apr_taste_of_canada_exhibitors.pdf
(SNF on Page 14)

March 2016 Article: http://www1.agric.gov.ab.ca/$Depart...ade11517/$FILE/export_catalogue_2016_web2.pdf
(SNF on Page 56)

From Q1 news release:

Sunora's Q1 2016 financial results were negatively impacted by a brief slowdown in demand from international customers due to economic restructuring, as China reorients from manufacturing to domestic consumption and from delays in shipments. International sales have trended upward in Q2, with expected additional sales during this period and beyond.
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Old 08-25-2016, 10:59 AM   Nav to Top  #20
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Sunora Foods earns $55,615 in Q2

2016-08-25 06:42 MT - News Release

Mr. Dean Stuart reports

SUNORA FOODS ANNOUNCES QUARTER 2 FINANCIAL RESULTS

Sunora Foods Inc. has filed its financials statements and management discussion and analysis for the fiscal period ending June 30, 2016. These filings are available for review on SEDAR and the Corporation's website.

During the fiscal period ended June 30, 2016 Sunora's highlights include the following:

-- Net Income for the period ending June 30, 2016 of $55,615 versus net income of $110,940 for the comparable period ending June 30, 2015; partly the result of internal issues at a co-packer.
-- Gross margin for the period ending June 30, 2016 of 7.1% versus gross margin for the comparable period ending June 30, 2015 of 9.3%; partly the result of internal issues at a co-packer.
-- Revenue of $2,835,773 for the 2016 Q2 versus revenue of $3,233,996 for the comparable 2015 Q2.
-- Cash and Cash Equivalents of $2,589,380 for the period ending June 30, 2016 versus $2,620,566 at the end of December 31, 2015.
-- Inventory of $1,097,463 for the period ending June 30, 2016; due to a build-up in inventory of bulk oil for future orders.
-- 8,028,400 common shares now held by Shanghai Hao Zhuo International Trading Ltd. of China representing 19% of the outstanding common shares. The shares were purchased from President and Chief Exective Officer Steve Bank

Financial Highlights

Period ending June 30, 2016
Sales $2,835,773
Gross Margin $200,726
Income before Taxes $76,185
Net Income $55,615
Earnings Per Share $0.001
Sunora's Q2 2016 sales were impacted by a slowing in bulk oil sales in Canada, and partially offset by increased sales to the United States and International locations including China. It is anticipated that sales may increase in the second half of 2016, and the Corporation continues to identify and develop new markets with a specific focus on China. Management is also focused on working with packagers of Canadian manufactured products that are looking for a strategic partner to expand international operations.

About Sunora Foods

Sunora Foods is a Calgary, Alberta based food oil entity trading and supplying canola oil, corn oil, soybean oil, olive oil, and specialty oils in Canada and internationally under the "Sunora", "Sunera" and numerous private label brands.

© 2016 Canjex Publishing Ltd. All rights reserved.
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