Ocean Bio-Chem, Inc. (OBCI) research, news, and more from GeoInvesting

Company description

Thu, 02 Oct 2014 04:00:00 GMT

Ocean Bio-Chem, Inc. manufactures, markets, and distributes various appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, and outdoor power equipment markets in the United States and Canada. It also produces private label formulations of its products for various customers and provides custom blending and packaging services for these and other products. The company’s marine product line consists of polishes, cleaners, protectants, and waxes; enzyme fuel treatment; and private label products, as well as brushes, poles and tie-downs, and other related marine accessories. It manufactures a line of automotive products, such as fuel treatments for gas and diesel engines, motor oils, greases, and related items; and anti-freeze and windshield washes, automotive polishes, cleaners, and other appearance items. In addition, the company provides fuel treatments, cleaners, polishes, detergents, fabric cleaners and protectors, silicone sealants, waterproofers, gasket materials, degreasers, vinyl cleaners and protectors, toilet treatment fluids, and anti-freeze coolants for the recreational vehicle/power sports markets. Further, it offers fuel treatments for outdoor power equipment/lawn and garden markets; and blends and packages chemical formulations, as well as manufactures PVC and HDPE blow molded bottles. Additionally, the company provides odor control products to prevent mold, mildew, and other unpleasant odors for homes, automobiles, boats, and recreational vehicles. Ocean Bio-Chem, Inc. sells its products under the Star Tron and Star brite brands to retail outlets through retailers and distributors. The company was founded in 1973 and is headquartered in Fort Lauderdale, Florida.

Research

Wed, 22 Jun 2022 04:00:00 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($5.92, was market up to $12.79 (+116%) pre-market; $56.3M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced it has entered into a definitive agreement to be acquired by OneWater Marine Inc, one of the largest and fastest-growing premium marine retailers in the United States.

OneWater Marine will pay $125 million in cash, or about $13.08 per share for OBCI, representing a 120% premium over yesterday’s closing price, and 74% from our last entry into the stock via our Select Long Disclosure Model Portfolio, where we added the stock at $7.50 in June 2020. The stock’s peak price of $19.65 in Oct 2020 represents a peak return of 162% during OBCI’s tenure as a holding.

With today’s acquisition, we will close out and remove OBCI from all of our model portfolios.

Research

Tue, 18 Jan 2022 18:40:50 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($9.38; $88.9M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced Q4 and full year 2021 net sales of $14 million and $64.3 million compared to $12.9 million and $55.6 million in the prior year period.

“We are exceptionally pleased with the record annual sales of approximately $64.3 million. This is the ninth consecutive year of record net sales. Over this nine-year period our sales have more than doubled, with more than 75% increase in just the last five years…

…The recreational boating industry is continuing a strong and robust trend: there is still a significant order backlog for new recreational boats by consumers. Also, the RV industry has seen record sales this past year. The Company has benefitted from a renewed interest in the outdoors, as families are more focused on out-of-the-house, recreational leisure activities. The leisure boating and RV sectors of the economy bode well for our Company as new and existing owners maintain and care for their investments. We see these strong trends continuing into 2022."

The release of OBCI earnings is serendipitous because we just discussed the company (at the 9:30 mark) in the PodClip just published to GeoInvesting, where we talked about how to view potentially deep value stocks when growth isn’t quite evident.

OBCI Is trading at a P/E of 10 , has $10.6 million in cash, minimal debt and is cash flow positive, potentially putting the stock in deep value territory. The stock had a huge run in 2020, aided by temporary revenue from COVID-19. Now that the pandemic is waning, those revenues are falling off. However, the company’s legacy business seems to be doing well. In the short run it may look like the company is not doing so hot on the growth front because COVID-19 revenue is falling at a faster rate than a legacy business is growing.

We’ll observe how OBCI’s growth starts tracking on an apples to apples comparison, when omitting Non-Covid related revenues. Once the optics improve, it’s possible that investors could re-rate the valuation if the legacy business continues to remain healthy.

Research

Mon, 15 Nov 2021 05:00:00 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($11.50; $109.0M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced Q3 2021 results:

Sales of $21.4 million vs $19.1 million in the prior year
EPS of $0.34 vs $0.49 in the prior year

In late August 2021, we stated we had reduced our long position in OBCI. One of our fears was the pressure on gross margins which seems to continue to be a challenge for the company. However, we like that sales are still rising against tough 2020 quarterly comps. It also appears that earnings could be set to rise as the company implements price increases to combat gross margin pressure.

With supply chain issues such as material shortages, increased freight, inflated prices of raw materials, and even some major raw chemical suppliers declaring Force Majeure, we still increased sales on all of our product lines other than Performacide, and fulfilled at 96% success rate—which is well above current industry standards.

With these high fulfillment rates, many of our major customers—including brick & mortar, online, and our distribution partners—have rewarded us with record sales increases of 18% over our record-breaking 2020 year-to-date sales. As a Made-in-the-USA full-vertical manufacturer, our branded Star brite products, as well as our many private-label partners' products, were stocked and put on shelves when other could not deliver. We foresee these significant increases in product sales to continue into 2022. To meet these increased demands, we are in the process of adding another expansion of $6,500,000 in plant and equipment to be completed by end of Q1 2022. We have also increased prices to make up for price increases of raw materials. These increases will be realized in sales in 2022."

Research

Tue, 17 Aug 2021 16:22:17 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($8.99; $85.2M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced Q2 2021 results:

Sales of $15.7 million vs $15.7 million in the prior year
EPS of $0.27 vs $0.36 in the prior year

“As discussed in our first-quarter press release, the private-label version of PERFORMACIDE® is still outperforming our projections in the cannabis market. The product line, along with its counterparts under the OdorStar® family of products, have become indispensable to cultivators across the continent, aiding in maintaining optimal air and surface quality to maximize crop yields, product quality, and profits for the growers. As the growth of legal cannabis spreads across the country we're also expecting continued adoption of our product line in this industry. There are other market initiatives that are underway, and we anticipate in the fourth quarter to see these opportunities to be accretive to both sales and profits."

As we mentioned above, we have reduced our position in OBCI. This was a tough decision that might come back to bite us since at a P/E of 8 the valuation is extremely low. In actuality, the quarter was not that bad, given that last year’s quarterly revenue greatly benefited by elevated sales of the company's disinfectant product to battle COVID-19.

However, we would like to gain some clarity on potential gross margin pressures and the magnitude of the cannabis opportunity based on the company’s new product line, OdorStar, which is an offshoot of its PERFORMACIDE brand.

As we have mentioned before, OBCI has been a challenging stock for us over the years due to the lumpiness and maturity of its business. And our recent ride on the stock was a wild one with the stock rising as much as 162% from our most recent entry in June 2020 at a price of $7.50. Then it gave back all of its gains.

In order for investors to really love the story, the company needs consistency in its financial performance. The resurgence in the boating industry and introduction of the OdorStar product might be that ticket once the company circles around the tough comps created from surging sales of PERFORMANCECIDE that occured in 2020.

The stock is also likely seeing pressure as it is probably going through a cycle of shedding “COVID-19 investors” in exchange for more value-based investors, as there does seem to be a tremendous amount of opportunity to unlock long-term value.

Finally, we would like the company to act on its recent share repurchase program and see the CEO buy more than the “whopping” 100 shares purchased on the open market in mid May.

Research

Wed, 28 Jul 2021 15:41:23 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($11.51; $109.1M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced flat Q2 2021 sales guidance of $15.7 million.

"As experienced in the first quarter of 2021 sales of our chlorine dioxide products (both branded PERFORMACIDE® as well as private label sales) have slowed down compared to the same period in 2020 when COVID-19 was on the rise.

We are quite pleased with the sales results for both the second quarter and six months of 2021. With the boating and RV markets booming, our other core product groups—marine, RV, and homecare—all had strong double-digit sales growth that enabled the Company to achieve these record sales in the six months ending June 30, 2021. As the U.S. begins to return to a new normal, we foresee this strong outdoor recreation home care sales trends continuing."

Research

Mon, 17 May 2021 16:44:22 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($11.51; $109.1M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced Q1 2021 results:

Sales of $13.1 million vs $7.8 million in the prior year
EPS of $0.20 vs $0.07 in the prior year

“As the U.S. begins to return to a new normal, we foresee this strong outdoor recreation trend continuing. Our customers—retail, brick & mortar, online, big box store, neighborhood hardware, marine distributors and dealers, RV, to name a few—are all experiencing increased sales...

...One of our biggest challenges in the first quarter is also one of our Company's strengths. In the first quarter we faced the challenge of keeping pace with the increased sales demand—the highest for a first quarter in the Company history. While other companies have had significant raw material shortages or production issues, our long-standing relationships with our supply chain partners and strong manufacturing team enabled us to keep production flowing with only minimal disruptions. Our Company has been able to meet most of our customers' orders on time."

The company pre-announced its revenue for Q1 in mid April. As we stated back then, while this was another strong quarter for the company, it is now heading into tough quarterly comps, as last year’s Q2 brought in $15.7 million on the heels of strong Performacide product sales.

Research

Mon, 19 Apr 2021 13:25:12 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($12.50; $118.5M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets announced record Q1 2021 sales of $13.1 million compared to $7.8 million in the prior year.

"We are hopeful that the boating season breaks early. Good weather coupled with an increase in the number of recreational boaters should bode well for a continued strong pace of incoming sales orders."

While this was another strong quarter for the company, it is now heading into tough quarterly comps as last year’s Q2 the company reported $15.7 million on the heels of strong Peformacide product sales.

Research

Mon, 29 Mar 2021 04:00:00 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($12.39; $117.2M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced Q4 2020 results: (company pre announced sales date in late January)

Sales of $12.9 million vs $9.7 million in the prior year
EPS of $0.09 vs $0.07 in the prior year

“On almost every level, 2020 was our best year ever financially. Despite the challenges of the pandemic, I am extremely pleased with our team's responsiveness, resilience, and performance.”

Business Outlook

"While we are achieving outstanding growth, and our financial position remains very strong, our market share is still just a ripple in the wave of potential that is Ocean Bio-Chem. Boat sales skyrocketed* last year. And of those new boat owners, 10% are first-time boat owners. We're excited. The industry is experiencing an influx of new blood—a younger generation—all wanting to bring friends and family into the lifestyle. For us, that represents a new and lasting customer that wants the same outstanding results that our products provide our current customers.

We are optimistic about the continued growth of our business and profits as documented by our recent announcements, including our $5 million plant expansion, and an increase of 50% of our quarterly dividend to shareholders to $0.12 per/share annually.

Business remains strong in the first quarter of 2021. Based on our outstanding results in 2020, we anticipate this momentum to build into another strong first quarter 2021."

Research

Tue, 19 Jan 2021 16:38:52 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($12.39; $117.2M market cap), a manufacturer, marketer, and distributor of appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets, announced record Q4 2020 sales of $12.9 million vs $9.7 million in the prior year.

These Q4 results exhibit the sequential lumpiness that can occur for OBCI throughout the year. Sales are down sequentially from the third quarter’s revenue of $19.1 million.

However, year over year growth and comments about 2021 continue to be bullish. Also note that historically, Q4 sales are lower than those of Q3.

Regardless, it's very possible that the stock could be weak until the company provides more color on the pace of growth it expects in 2021.

Management comments:

“During the lockdown, we saw increases on home projects and storage items—from Teak Care to Star Tron Enzyme Fuel Treatment. And then after the lockdown, America essentially 'went outside.' Boat sales, RV sales, kayaks and paddleboards—all seeing record highs this past year. It's only natural that these new owners need to take care of their investments. We see this continuing well into 2021.

Then there are our chlorine dioxide products," the CEO continued. "With the scarcity of many common bleach-based disinfectants or disinfecting wipes that use quaternary ammonium compounds (quats), customers were able to try out products—such as ours—that don't rely on carcinogenic or poisonous residue to kill viruses and bacteria. We hope to see this trend continue for the health and safety of the population. We also have some great plans for 2021 to help educate customers on the benefits of disinfecting without harmful residue or caustic fumes.

We opened the year 2021 with a strong backlog of open sales orders of over $7.0 million, the largest in Company's history at a year end. And with outdoor activities on the rise as well as the ongoing need for disinfecting products, we are optimistic that it will lead to increased sales growth in 2021 in all major product groups."

Given this latest earnings report, we're not quite sure how the stock will perform in the short to medium term, so we are going to closely monitor its current role as a stock in Buy on Pullback Portfolio 9, where it currently resides. Any considerations of our actions with respect to its continued inclusion in the portfolio will be conveyed to you via Tweet or email.

Research

Mon, 16 Nov 2020 15:49:07 GMT

For those of you reading this week’s wrap-up who are not Geoinvesting premium members and not aware of our Buy on Pullback Model portfolios, we are constantly on the search for stock prices of companies we like that fall or have muted reactions to good news. These types of overreactions or under reactions are often the result of market gyrations or the inability of investors to digest the full scope of a particular event. In early 2016 we launched “ Buy on Pullback ” Model Portfolio 1.0 in order to take advantage of these mispricing scenarios.

We just closed out all the positions in our Buy on Pullback Model Portfolio 8.0 created earlier this year which posted an average return of 85.3% in 5 months . On October 30, 2020 we opened Buy on Pullback Model Portfolio 9.0 to take advantage of falling stock prices during a market selloff. The portfolio is off to a great start:

4 out of 5 stocks in the portfolio are up
There is a cumulative return of 51.22% across 4 stocks
The average return is 10.24%

The early returns are being buoyed by the performance of Ocean Bio-chem, Inc. (NASDAQ:OBCI) , up 23.25%.

On June 19, 2020 we initially disclosed a long position in Ocean Bio-chem, Inc. (NASDAQ:OBCI) at $7.50 as we felt the company would experience short term and long term bump in sales as their products become more attractive in the current and post COVID-19 environment.

OBCI’s products include:

Boating and RV products (benefitting from surge in demand for boats and RVs during COVID-19)
Performacide, a commercial sanitization product line (benefitting from combating the spread of COVID-19)

The stock had a runup to $22.55 on August 3rd, 2020 before pulling back sharply.

Then, we added the stock to the Buy on Pullback Model Portfolio 9.0 on Monday, November 9, 2020 after the stock fell 20% to $12.50 in one day. We surmised that the big one-day pullback was a result of negative investor sentiment that the demand for the company’s products would be dampened by the imminent arrival of Pfizer’s “90% effective” COVID-19 vaccine. We believe the negative investor sentiment was way off the mark.

Instead, we think that OBCI’s product lines will remain strong and maybe get stronger after COVID-19 passes, as stated in last Monday’s tweet:

Following a strong 2020 Q2 financial outing in July, OBCI issued fantastic 3rd quarter numbers during the day last Friday:

In reaction to Q3 numbers , the stock climbed 13% on Friday to close at $15.24. We anticipate a related press release will be issued tomorrow morning and hope it will shed more light into some of the bullish assumptions we are making.

Sales of $19.1 million vs $12.5 million in the prior year
EPS of $0.49 vs $0.12 in the prior year

“Your company was built to react fast to changing markets and take advantage of new opportunities while also providing best-in-class products, logistics and customer service to our existing customers. This, combined with strong financials and a great team, prepares us for continued success in 2021 regardless of challenges to come."

OBCI released its 10-Q late in the day Friday and saw its shares rise 13% on the strong financials as we covered in our weekly wrap-up email. We were hoping that management would have been more aggressive with commentary about how the company’s product sales that were benefiting from Covid-19 can perform post pandemic.

Research

Tue, 10 Nov 2020 18:29:28 GMT

**Call To Action Update - OBCI Added To Our Buy On Pullback Portfolio 9.0

Yesterday, investors embarked on a massive rotation out of technology and bullish COVID-19 themed stocks into cyclical and bearish COVID-19 themed stocks. The catalyst that lit this candle was Pfizer’s breakthrough announcement that it developed a COVID-19 vaccine that will be 90% effective. We kind of addressed this situation In our September 20, 2020 weekly email where we had talked about how the bullish case for some of our long positions might be affected once the pandemic began to abate.

Basically, we highlighted the challenge we could face when trying to determine which of these stocks would continue to maintain their COVID induced growth compared to those where growth would abate or level off. This prompted us to create and publish a table highlighting the impact that COVID-19 has on certain stocks in our coverage universe. The full assessment can be found here.

Well, the Pfizer news has caused the rubber to meet the road, causing a broad selloff in stocks that had been benefiting from selling products and services during the pandemic. Our job is to determine if any of the pullbacks are overdone. This is especially the case where investors have clearly misinterpreted what coming out of the pandemic could mean for the companies that can clearly continue or even strengthen their position in a post-pandemic world where societal norms have changed for the foreseeable future. And not to mention, the companies obviously have other sources of income generation other than those associated with the pandemic.

Yesterday's huge dump in Ocean Bio-Chem, Inc. (NASDAQ:OBCI) has caught our attention.

Via premium tweet, we stated we were adding OBCI to our Buy on Pullback Mock Portfolio 9.0

Below are the comments from the image indicating that COVID-19 was more likely a catalyst for longer term trends rather than the deterrent the market had indicated yesterday.

“The sales outlook of our chlorine dioxide-based patented technology outlook remain strong, as our key distribution partners continue to secure protocoled business with national and college sports leagues, mass public transits, large rental properties, government agencies, and a wide variety of Industrial and Institutional accounts. Adding to this success is the continued growth of one our EPA sub-registrants' franchise business for disinfecting homes, schools, colleges, day care centers, restaurants, and a host of local businesses. All these opportunities are expected to expand as people become more comfortable with travel again and return to work and school. We are building a base of business that will continue beyond the COVID-19 pandemic. Currently our increased production capacity is now able to meet customer demands."

Mr. Dornau concluded, "According to Trade Only Today – a daily publication for the marine industry - preliminary data representing about half the U.S. boat market-commented there is a continuing trend of people taking to the water. Boat registrations increased 31.8% year-over-year in the main powerboat category. We believe with social distancing and travel restrictions easing, many families are now finding recreational boating a safer choice. As in the second quarter, our third quarter sales of our marine product group had again a double-digit sales increase over prior year results."

OBCI becomes the 4th stock on our Buy on Pullback Mock 9.0 portfolio.

Research

Tue, 20 Oct 2020 20:14:07 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($16.44; $155.5M market cap) manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets. The company also manufactures and sells a disinfectant product line, targeting the COVID-19 commercial market.

Yesterday via premium tweet we highlighted the company’s strong Q3 2020 sales guidance:

We wanted to highlight management's comments from the release:

“The largest product group sales growth, as previously disclosed, was the Disinfectant line of products including Performacide®. The Company's sales also continue strong in all other major product categories, including Star brite® marine appearance and maintenance chemicals and accessories, as well as Star Tron® Enzyme Fuel Treatment.

The sales outlook of our chlorine dioxide-based patented technology outlook remain strong, as our key distribution partners continue to secure protocoled business with national and college sports leagues, mass public transits, large rental properties, government agencies, and a wide variety of Industrial and Institutional accounts. Adding to this success is the continued growth of one our EPA sub-registrants' franchise business for disinfecting homes, schools, colleges, day care centers, restaurants, and a host of local businesses. All these opportunities are expected to expand as people become more comfortable with travel again and return to work and school. We are building a base of business that will continue beyond the COVID-19 pandemic. Currently our increased production capacity is now able to meet customer demands."

The company seems a little more bullish than they have in other press releases which usually contain phrases like: “We hope that the growth will continue into the future” or “we are cautiously optimistic that we can continue to grow.”

While some may believe we are overstretching here, it is our belief that the company's disinfectant division will grow even after the coronavirus passes and as commercial enterprises adjust to changing consumer attitudes, and even possibly stronger government regulation.

Research

Mon, 28 Sep 2020 16:09:39 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($14.81; $140.1M market cap) - On June 19, 2020 we disclosed that we re-established a long position in OBCI at around $7.50 based on what we felt could be increased demand for its sanitization product line that the company had high hopes for a few years ago. OBCI manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets.

Shares had a quick "COVID-19 run" to over $22 in early August before retracing down to current levels, despite reporting extremely strong Q3 numbers.

This morning, we just wanted to provide you with a quick thought we had on the company, inspired by our COVID-19 risk assessment table we recently published. The table offers our take at the positive/negative short and long-term impact of COVID-19 on 38 stocks in Geoinvesting's coverage universe.

It is our belief that OBCI’s sanitization business may actually be a COVID-19 theme that gets stronger when the economy fully opens. As restaurants, hotels, and casinos get back to regular operations, the need for sanitization products will only increase as it becomes the new norm moving forward.

Research

Tue, 14 Jul 2020 04:00:00 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($13.50; $127.6M market cap) manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets. On June 19, 2020 we re-established a long position in OBCI based on what we felt could be increased demand for its products.

The company announced record sales for its Q2 2020 of $15.7 million vs $10.9 million in the prior year.

“Our second quarter net sales were exceptionally strong, doubling in comparison to the first quarter of 2020. The Company's sales increased in all major categories, including the Star brite® core market of marine appearance and maintenance chemicals and accessories, as well as Star Tron® Enzyme Fuel Treatment. The largest growth, however, was seen in our Performacide® line of disinfectants and sanitizers.

Sales of the entire product group of our chlorine dioxide-based Performacide® disinfectant and sanitizer remain strong, along with the order inflow. In response to providing essential supplies during the COVID-19 outbreak, we have tripled our Performacide® production capacity since the beginning of the year and are currently designing and building additional equipment for increased manufacturing efficiencies so we can try and meet customer demands.

We also believe that as social distancing and travel restrictions remain in place, many families are discovering that recreational boating and RVs can be a safer alternative. This could be one explanation for the double-digit sales growth the Company has experienced in its marine and RV categories for the comparative second quarter. We're excited to see a new generation discover the outdoors, and glad we can be good stewards of cleaning and disinfection practices during such an important time in history."

See a summary of our take on OBCI from a recent Weekly Wrap Up.

Research

Sun, 21 Jun 2020 04:00:00 GMT

If you are familiar with legendary fund manager Peter Lynch and his must read book, One Up On Wall Street, you know exactly what “Buy what you know” represents. The Fidelity Magellan Mutual fund averaged an annual return of around 30% while Lynch was its portfolio manager between 1977 and 1990. Lynch was a big believer that even the average investor could achieve great success by investing in companies and industries that they have some type of relationship with.

For example, let’s say that you worked at Gap, Inc. (the) (NYSE:GPS) when it was a dominant player in retail during the 1980’s and 1990’s. $5000 invested in GAP stock in 1980 would have been worth $4.2 million at its peak in 1999 and would still be worth $1 million today. Or maybe you like to wear Lululemon (NASDAQ:LULU) sportswear while doing yoga, freshening up afterwards with beauty products from $ULTA. Both of these stocks have performed spectacularly since going public:

Maybe instead of buying your morning brew at Starbucks, you opt for a 32-ounce energy drink from Monster Beverage Corporation (NASDAQ:MNST), the best performing stock of the last 20 years, up 7000%. Now, I don’t recommend you do this, but we all have that fetish that we are not so proud of!

When I was younger, fresh off reading One Up On Wall Street, I would frequent shopping malls to find out what stores were trendy by counting shoppers and interviewing employees. I remember buying stock in costume jewelry retailer Claire’s Stores, making money several times based on this practice.

Unfortunately, Chick-Fil-A is not a public company or I would have invested mounds of money into the stock. Whenever I was on one of my undercover mall road trips, I would always get side-tracked by devouring two classic Chick-Fil-A meals before starting my store to store route. By the way, although it doesn’t quite make up for all those times the Philadelphia Airport lost my luggage, Chick-Fil-A is the only reason I still love flying into Philly. Just don’t fly in on a Sunday. Chick-Fil-A is closed.

My big Peter Lynch multi-bagger miss of the last few years was when a GeoInvesting analyst strolled into the office one morning, telling me that I should look at a stock called “HEAR”, now well-known as Turtle Beach Corporation (NASDAQ:HEAR). I murmured something and dismissed the idea, thinking the stock was an old hearing aid device stock (Hear USA) that I wanted nothing to do with. Well, had I dug deeper, I would have realized the company was actually a leading manufacturer and marketer of headsets for gamers. The headsets were selling off the shelves due to the crazy popularity in the interactive on-line video game, Fortnight. The stock was around $2.50 cents at the time. Around $30 later, I lashed out at my brother and 15 year old nephew (at the time) who loves playing video games for not making me buy the stock!!!

That brings me to a stock I’ve dealt with before…

Ocean Bio-chem, Inc. (NASDAQ:OBCI)

OBCI manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets.

During a morning email last week we mentioned:

“We have fooled around with OBCI several times since Geoinvesting’s inception and will dig into our OBCI dating woes more during the Weekly Wrap Up Newsletter this coming Sunday.

We are mildly intrigued and will visit this unpredictable company due to the possibility that there will be sustained “COVID-19 demand” for boating and RVs amid less air travel. This is definitely a trend that investors have been talking about, which has caused similar types of stocks to increase over the last few weeks.

Shares are trading at a P/E of 17.2.”

I have toyed with the OBCI in the past because of its strong balance sheet, leading brands, long 27-year history and for being known for its well-respected extensive product line it sells to boaters. Any boater in South Florida knows OBCI’s Star Bright product lineup of waxes, polishes, cleaners, teak finishes, motor oils, and fuel additives.

However, the company has been an extremely slow grower because its products have been well-entrenched in the market for years. OBCI’s stock chart illustrates the lack of breakout growth:

So, why am I getting a little curious about the stock now? I just turned 50 on June 9 and celebrated by joining my friend for a boating trip with some of his family members visiting from California. Of course, I had a Peter Lynch “aha moment” and took the chance to ask the owner of the place where we rented the boat how boat sales and rentals were going. His exact words were, “off the charts, record year.” I immediately scrolled through my phone to locate my contact at OBCI to schedule a visit at their headquarters in Fort Lauderdale, Florida, which is about 20 minutes from where I live.

Well, I had that meeting last Thursday. While the company seemed upbeat about the legacy boating and RV business due to increased demand for recreation (as people are not flying these days)…

“Mr. Dornau continued: “However, as stay-at-home and shelter-in-place orders are being lifted by states, marinas and retail outlets, including those of our largest customer, are reopening. We believe that as recreational boating increases, we will see our core marine incoming order pace increase. Several factors, including lower-than-average fuel prices, lack of options such as movie theaters or theme parks, and with what we believe is a strong desire from consumers to be outdoors will all support a very active recreational boating 2020 season.”

…I became most excited about the potential outlook for PERFORMACIDE, a new product the company introduced a few years ago. Basically, performacide is a pouched powder solution you drop in a bottle and fill with water. The solution is odorless and environmentally friendly.

“Star brite’s PERFORMACIDE® is a suite of unique point-of-use ClO2 generation system products. There are three main Performacide categories: Disinfectants for Hard non-porous surfaces, Air Care Products, and Mold & Mildew Products. When the PERFORMACIDE® sachet is immersed in water, it creates a ClO2 solution that delivers the freshest, most-effective means of disinfecting, sanitizing, deodorizing and mold/mildew remediation. The solution remains active for 15 days.”

However, the product has not really gained the traction the company had expected in a very crowded disinfectant space that has some dominant players. That is until COVID-19. Now, it appears that the product is rapidly gaining popularity as demand for cleaning solutions to combat COVID-19 is outstripping supply. This is evidenced by the increase in shifts and the additional personnel at its subsidiary manufacturing plant, Kinpak Inc. in Montgomery, Alabama hired to meet the overwhelming demand for its disinfectant product Performacide®.

Additionally, during my site visit, I observed a photograph hanging on the wall showing what I believe is a recently completed massive expansion of its manufacturing plant.

In a nutshell, it looks as if the company could experience a short-term bump in sales in its legacy business (which we estimate is about a $30 to $40 million business) and benefit from the arrival of possible short and longer term inflection points in its PERFORMACIDE product line. I will continue to flesh out the story and where I think the stock could be heading. But I think for now, Peter Lynch would be proud.

Have a great week

Maj

Disclosure: Long OBCI

Research

Wed, 17 Jun 2020 04:00:00 GMT

Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($6.57; $62.1M market cap) manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets.

We are toying with initiating a small position OBCI.

We have fooled around with OBCI several times since Geoinvesting’s inception and will dig into our OBCI dating woes more during the Weekly Wrap Up Newsletter this coming Sunday.

We are mildly intrigued and will visit this unpredictable company due to the possibility that there will be sustained "COVID-19 demand" for boating and RVs amid less air travel. This is definitely a trend that investors have been talking about, which has caused similar types of stocks to increase over the last few weeks.

Shares are trading at a P/E of 17.2.

Research

Wed, 12 Sep 2018 14:30:40 GMT

GBR Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($4.48; $40.5M market cap) manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, and recreational vehicle markets. We are keeping a close eye on OBCI as many marine product/boating companies have recently reported strong earnings (like MBUU & MCFT) as well as the possible demand for its products due to what could be unfortunate damage caused by Hurricane Florence.

We closed our long position in OBCI back in March of 2018 but maintained the company as a GBR as we continue to believe that as the company gains traction on new product lines or secures more distribution venues that it will do well over time.

Research

Thu, 15 Mar 2018 15:13:47 GMT

Closed Our Long Position in GeoBargain on the Radar (GBR) OBCI

GBR Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($3.89; $35.9M market cap) is a cleaning and maintenance product provider. We have had a long history with OBCI, initially coding the company as a GeoBargain in October of 2014 when the stock was trading at $3.88. Shares reached a high of $6.72 very shortly after that, and has since never attained that level again. In August 2015, we closed our position and removed OBCI from the GeoBargain list as management continued to overpromise and underdeliver.

In November 2016 we re-established a position based on strong Q3 2016 results, when the stock was trading at $3.40. Shares had a nice run, reaching a high of $5.71 before retracing once again. Over the next several quarters, it was more of the same, although we felt that investors with long term patience would likely be rewarded. We have now closed our long position but will keep OBCI as a GeoBargain on the Radar (GBR). We continue to believe that as the company gains traction on new product lines or secures more distribution venues that it will do well over time.

We also still believe that that OBCIis a nice acquisition target, but it may take an activist to get involved to unlock the value for shareholders.

Research

Wed, 15 Nov 2017 16:54:26 GMT

GBR Ocean Bio-Chem Inc. (NASDAQ:OBCI) ($4,17; $38.4 m market cap), a cleaning and maintenance product provider, announced Q3 2017 results during the trading day yesterday:

Sales of $11.6 million vs $12.2 million in the prior year
EPS of $0.09 vs $0.17 in the prior year

Quotes from management:

“The third quarter sales were adversely affected by Hurricane Harvey and Hurricane Irma, which caused some of our customers in the Houston metropolitan area and in numerous Florida locations to temporarily close retail and warehouse/distribution operations. Moreover, some shipments of our products in these areas were delayed because trucking companies that we utilize to ship our products gave priority to relief efforts in support of victims of the hurricanes. On a positive note, the Company had increased sales of its Odor Star®/Performacide® products in the affected hurricane areas. We believe that demand for these products, increased use in homes and commercial restoration as a result of damage caused by the hurricanes...

...The 84,000-sq. ft. expansion of our manufacturing and distribution facilities in Montgomery, Alabama is expected to be completed in the first quarter of 2018, positioning us well for anticipated increased sales of our Performacide® products in addition to both Star Tron® and Star brite® branded products in 2018 and beyond."

Research

Tue, 25 Jul 2017 14:42:37 GMT

OBCI ($3.97)

Yesterday, during the trading day, OBCI announced Q2 2017 sales results. Sales reached record Q2 levels of $9.9 million vs $8.7 million in Q2 2016. However, in late April, after the Company announced record Q1 2017 results we modeled out our potential forecast based on Q1 being the seasonally weakest quarter. We noted that in Q2 and Q3, the Company typically experiences significant sequential increases in sales as compared to Q1. While sales did increase sequentially by 17.5%, our 12-year study showed Q1 to Q2 sales had increased 20% to 50% in every year except 1 (2006).

Short-term investors need to take note that management continues to invest in advertising and marketing and continues to look to improve its distribution network and that the company has a real tough Q3 2017 comp. These factors could lead to a weak YoY Q3 performance. We believe OBCI is still an attractive long term play if it can secure more distribution venues, gain traction on Amazon and secure better/more shelf space in current distribution network, but their is near-term risk.

Long term patience

Similar to SMID in the past, we would not be surprised if patient longer term investors are rewarded. In May 2016, we stated we had closed out our long position in SMID as we had uncertainty heading into its Q1 results. It was clear to us that investors in SMID would need to exercise patience and deal with volatility in sales and earnings along a path to growth. Those who stayed that path saw shares triple after our sell disclosure. It is possible we may wind up saying the same about OBCI one day.

Research

Tue, 16 May 2017 15:23:04 GMT

OBCI ($4.45) announced Q1 2017 results yesterday at the open:

Sales of $8.4 million vs $6.7 million in the prior year

EPS of $0.05 vs a loss of $0.06

Quotes from management:

"Ocean Bio Chem, Inc. is well positioned to benefit from the improving economy, lower unemployment rates and moderate fuel prices. We are cautiously optimistic that our financial performance will continue to benefit from these trends for the balance of 2017."

Recall, the Company had pre announced sales for Q1 in late April 2017. As we stated at that time, Q2 and Q3 have experienced significant sequential increases in revenue compared to Q1 in every year except 1 since 2005. You can see our full sales analysis research note here.

Research

Tue, 25 Apr 2017 17:58:57 GMT

OBCI ($4.56) - Yesterday during the trading day OBCI released Q1 2017 sales figures of $8.4 million vs $6.8 million in the prior year. The $8.4 million is a record for Q1 sales, and Q1 is the seasonally slowest quarter for the Company. Management believes the strong sales trends will continue for the balance of 2017. The stock initially jumped on the news hitting a new 52 week high of $5.65, then pulled back closing down 5%. Management failed to communicate that Q1 is the weakest quarter of the year, which likely led to some confusion about the revenue trajectory for fiscal 2017. Here is an illustration of the seasonality picture that has mainly held over since 2005.

As you can see, Q2 and Q3 have experienced significant sequential increases in revenue compared to Q1 in every year except 1 (2006) since 2005. The relationship is also strong for Q4, but not as strong as Q2 and Q3. Assuming the relationship holds true, it bodes very well for fiscal 2017. Ultimately, we think the Company is going to have to find a way to gain more distribution outlets and/or get more representation within its current distribution network, such as Walmart.

Special Dividend

Mon, 17 Apr 2017 14:56:50 GMT

OBCI ($4.71) announced a special cash dividend of $0.06.

Peter Dornau stated, "This special cash dividend is the third special cash dividend in past four years rewarding our loyal shareholders. We are pleased to issue the special dividend to our shareholders as we continue to generate strong cash flow from our operations."

Research

Fri, 31 Mar 2017 17:34:23 GMT

OBCI ($4.80) reported Q4 2016 results:

Sales of $8.5 million vs $8.4 million
EPS of $0.05 vs $0.01

Comments from management:

"Our net sales and gross margin enabled us to achieve significantly increased net income and earnings per share in 2016. Our operating results were adversely affected early in 2016 by the previously disclosed litigation expense of approximately $1.1 million that we incurred in the first quarter of 2016. Once the litigation was behind us, our operating results improved substantially."

Mr. Dornau concluded: "First quarter 2017 sales were strong, and we anticipate a meaningful sales increase as compared to first quarter of 2016. We are cautiously optimistic that we can continue to achieve favorable results in future 2017 quarters."

We feel these results for this manufacturer of marine, automotive, power sports, recreational vehicle, and outdoor power equipment products may not be strong enough to move the needle significantly, but it’s possible that the strong comments for Q1 and the company’s improved profitability could offer support for the stock. “Cautious optimism” is a common tone used by management, and if shares pull back, an attractive buying opportunity may present itself.

We initiated our position in our November 23, 2016 call to action on the heels of strong Q3 results, when shares were trading at $3.44. We stated:

“Q3 2016 marked the end of this battle which helped the company report its strongest quarter in some time. As a result, we estimate that the EPS will benefit about 10 cents annually. Adjusting trailing numbers to add back legal expenses yields an adjusted trailing EPS of $0.33. Given the healthier state of the microcap sector, we feel the stock could trade at a trailing P/E of 25 or $8.25.”

Research

Tue, 13 Dec 2016 14:38:57 GMT

**Call To Action Update

$OBCI manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, and outdoor power equipment markets in the United States and Canada.

Initial Call To Action: Long
Initial Call To Action Date: November 23, 2016 email
Reason Went Long: Strong Q3 results. See our Q3 summary here.
Price Update: Shares of OBCI broke out yesterday hitting a new 52 week high of $4.35. Shares rose 12% to close at $4.26.

Research Update- For the last two years, OBCI has spent around $2 million in legal fees to fight “Advertising Litigation”. Q3 2016 marked the end of this battle which helped the company report its strongest quarter in some time. As a result, we estimate that the EPS will benefit about 10 cents annually. Adjusting trailing numbers to add back legal expenses yields an adjusted trailing EPS of $0.33. Given the healthier state of the microcap sector, we feel the stock could trade at a trailing P/E of 25 or $8.25.

Research

Wed, 23 Nov 2016 15:26:13 GMT

We have initiated a position in ex-GeoBargain OBCI ($3.44) due to strong 2016 Q3 numbers released on November 14, 2016:

Sales of $12.2 million vs $10.8 million in prior year
EPS of $0.17 vs $0.03 in the prior year

The strong durable good orders numbers released today may also bode well for the company in the future. We will continue with our due diligence.

OBCI manufactures, markets, and distributes various appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, and outdoor power equipment markets in the United States and Canada

Research

Mon, 15 Aug 2016 16:22:19 GMT

OBCI ($2.20) - Ex-GeoBargain OBCI reported Q2 2016 results:

Sales of $8.7 million vs $8.7 million in the prior year
EPS of $0.07 vs $0.01 in the prior year

Quotes from management:

"We have started the second half of 2016 with strong sales and orders. We are cautiously optimistic these trends will continue and will result in a very good year."

OBCI has over-promised and under-delivered in the past. However, the improving economy should have a positive effect on their business (Cleaning products for Boats/RV’s etc..).

Research

Mon, 17 Aug 2015 15:18:59 GMT

Closed our long position in OBCI

During Friday’s trading session, OBCI ($2.86) reported Q2 2015 results. Via premium tweet, we stated we were removing OBCI from the GeoBargain list and that we had closed our long position. OBCI’s management continues to over promise and underdeliver. We have placed OBCI on the “GeoBargain On the Radar” list and will continue to actively monitor the company. We coded OBCI as GeoBargain on at $3.88 on 10/8/2014. Shares reached a high of $6.98 on 10/10/2014.

Comments & Business Outlook

Fri, 15 May 2015 04:00:00 GMT

First Quarter 2015 Results

Q1 2015 net sales of $6.0 million vs $5.9 million in the prior year
Q1 2015 EPS of $0.00 vs $0.05 in the prior year

Ocean Bio-Chem President and CEO Peter Dornau stated: "Our first quarter delivered mixed results. We were pleased to see an increase in sales, particularly following a record breaking fourth quarter in 2014. The cold and soggy spring season nationwide delayed the start of the marine selling season. While disappointed with essentially a breakeven in earnings for the first quarter, this was anticipated due to budgeted increases in operating expenses. These higher operating expenses are related to the launch of two major new product lines in 2015. The first is 'The Outdoor Collection' which is a full line of outdoor furniture and patio care products that debuted at the National Hardware Show in Las Vegas this past week. The response from current and prospective customers was extremely positive, citing a major uptick in patio product sales in the U.S. In addition we also launched a full line of recreational vehicle (RV) care products. Many of our current customers have added RV divisions to their portfolios in order to capture market share of this fast growing industry. We are already booking advance sales with these current customers for delivery in the current quarter and presenting the line to new RV customers."

"Also contributing to the increased budgeted operating expenses were additional advertising campaigns and trade shows that are geared to drive sales of Performacide®, new products introductions and core sectors. We look at these expenses as necessary to building the foundation of our new product lines which will lead to increased sales and market shares," Mr. Dornau said.

"With the improvement in weather conditions in most regions of the United States, (approximately three weeks earlier than last year), lower gas prices, new product innovations, our strong product brands and general improvement in the U.S. economy, we have seen encouraging increases in sales in April and are optimistic that our results will be strong for the remainder of 2015."

Mr. Dornau continued, "We are also encouraged by significant progress in our Performacide® product group. In the first quarter 2015, we initiated distribution to two major online retailers. One of our newer distributors has gained product distribution in the National Football League, National Hockey League, and major NCAA colleges to combat MRSA. Performacide® is now distributed by the largest supplier to the prisons. The product is being tested in many other markets such as home restoration companies."

Mr. Dornau concluded, "The Company's financial condition remains strong. We ended the first quarter with a current ratio of over 5:1, with no borrowings on our line of credit."

Comments & Business Outlook

Tue, 31 Mar 2015 04:00:00 GMT

$OBCI ($4.64) - GeoBargain OBCI reported Q4 2014 results:

We coded OBCI as GeoBargain on at $3.88 on 10/8/2014. Shares reached a high of $6.98 on 10/10/2014.

Q4 2014 results:

Reported record Q4 revenues of $8.8 million vs $7.8 million in the prior year.
Q4 EPS of $0.06 vs $0.04 in the prior year period.

Management stated Q1 2015 is off to a slower than anticipated start due to an unusually cold winter. Cautious optimism was conveyed as management declared “...as the weather improves, we will see stronger sales to our marine customers.”

We are obviously disappointed with the management's guidance for Q1 2015, especially after their bullish commentary in recent sales guidance release and in an interview on CEOLIVE TV. We will keep OBCI coded as a GeoBargain, but concede that shares may take hit due to the uncertainty management has introduced to OBCI story.

It is worth noting that Q4 2013 also contained similar verbiage regarding weather, but the company was able to come through with a strong 2014.

Comments & Business Outlook

Thu, 15 Jan 2015 05:00:00 GMT

FORT LAUDERDALE, Fla., Jan. 15, 2015 /PRNewswire/ -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI), today is pleased to announce all-time record fourth quarter and full year net sales for 2014.

Sales for the fourth quarter of 2014 were approximately $8.7 million compared to $7.8 million in the fourth quarter of 2013, an increase of 12%. For the full year 2014, net sales were approximately $33.9 million compared to $32.7 million in 2013, an increase of approximately 4%.

Peter Dornau, President & CEO commented: "The fourth quarter of 2014 was especially impressive, with the strong growth of our sales, attributable to increases by a broad range of customers. Our customer sales concentration in 2014 was less dependent on any one key customer than in previous years.

"We achieved increased sales growth in the marine, automotive, power sports, motorcycle and outdoor power equipment sectors. The increase in sales was led by double digit growth of sales of our fuel additive product line – StarTron® -- as well as double digit sales growth in our other product groups in the fourth quarter of 2014," Mr. Dornau said.

"The fourth quarter 2014 sales were the fourth consecutive record net sales for the final quarter of the year. In addition, the full year 2014 net sales eclipsed our previous record sales totals accomplished last year. As we continue to increase sales, the percent of operating expenses should decline as a percent of sales," Mr. Dornau concluded.

Comments & Business Outlook

Tue, 23 Dec 2014 05:00:00 GMT

FORT LAUDERDALE, Fla., Dec. 23, 2014 /PRNewswire/ -- Ocean Bio-Chem, Inc. (NASDAQ: OBCI), said today in an interview with CEOLIVE.TV that the significant drop in gasoline prices, the Company has seen a recent increase in sales of its products to users of boats and RVs.

"The drop in gasoline prices means that boats and RVs are more affordable to use. We have expanded our sales and marketing departments to take advantage of prospects for 2015," said Ocean Bio-Chem. Inc. President and CEO Peter Dornau in an interview with CEOLIVE.TV. The entire interview can be viewed at http://youtu.be/QKhf7veWLl4 .

In the interview, Mr. Dornau spoke about the new product Performacide, and its EPA approval as an effective disinfectant, sanitizer, fungicide and general-purpose antimicrobial and surface cleaner on hard surfaces. Various applications include medical laboratories, hospitals first responder's facilities and equipment, veterinary hospitals as well as food processing and cruise ships industries. Mr. Dornau concluded there are many more approved applications and opportunities for Performicide which we will market either directly or indirectly thru distributors.

"Ocean Bio-Chem has an extremely strong balance sheet and minimal debt. We are also in a strong cash position, as we look to expand sales in all of our products," Mr. Dornau said.

Ocean Bio-Chem, Inc. is principally engaged in the manufacturing, marketing and distribution of a broad line of appearance and maintenance products for boats, recreational vehicles, automobiles, power sports, outdoor power equipment and motorcycle markets under the Star brite® StarTron® and other trademarks within the United States of America and Canada. In addition, the Company produces private label formulations of many of its products for various customers and provides custom blending and packaging services for these and other products. It manufactures its products in a 300,000 square foot facility in Montgomery, Alabama, from which they are distributed across the globe.

Comments & Business Outlook

Fri, 14 Nov 2014 05:00:00 GMT

Third Quarter 2014 Results

For the three months ended September 30, 2014, net income increased by $281,000, or 45%, to approximately $903,000 or $0.10 per diluted share, compared to approximately $622,000 or $0.07 per diluted share for the same period in 2013.
The Company also reported record net sales for the nine months ended September 30, 2014 of $25.2 million dollars compared to $24.9 million for the comparative period of 2013.

Peter Dornau, President & CEO, commented that "We have just concluded a very successful quarter. For the third quarter we reported record gross profit, as a result of an increase in our gross profit percentage by approximately 4 percent, increasing from 30.5% in the third quarter of 2013 to 34.4% for the third quarter of 2014. The increase in gross profit percentage is a result of an improved sales mix of higher margin products, in addition to price increases and improved efficiencies at our manufacturing facilities."

"Performacide® was well received at the recent ISSA show in Orlando, Florida with commitments from several key distributors for initial product shipments scheduled in the fourth quarter of 2014," Mr. Dornau said. "There is also interest by application equipment manufacturers for the use of chlorine dioxide in conjunction with their devices, along with cobranding opportunities."

"Because Performacide® is on the EPA list of products meeting the Center for Disease Control's criteria for disinfecting in hospitals for Ebola, there are opportunities developing in the health care channel for additional distribution. We have also just launched our new web site: www.performacide.com. We invite shareholders to see our exciting range of new products.

"As previously announced, Ocean Bio-Chem, Inc. is providing a donation of Performacide® to help fight the Ebola outbreak in Liberia. Assistance with the donation was arranged by two non-profit organizations, 'Friends of Liberia' and 'Mission Harvest America, Inc.' which are transporting the product with other essential aid items. The Performacide® product is going to the Ministry of Health and Social Welfare to be disbursed to aid workers for use in hospitals and medical facilities around the country. The patented Performacide® pouch system is very light weight and easy to transport and only needs to be added to water at the point of use," Mr. Dornau concluded.

Greg Dornau, Executive Vice President of Sales & Marketing, stressed that "our Company had record net sales in the nine months ending September 30, 2014. The strong sales during these nine months are a testimonial to our successful marketing programs."

"For the nine months, we continued to increase sales of our enzyme fuel treatment product Star Tron® in the marine, automotive, power sports and small engine markets. In addition, we increased sales to our core marine customers. We expect continued sales growth to existing customers by launching several exciting new products in 2015. Additionally, in early 2015, we are planning new channels of distribution identified as segments for additional sales growth for the Company," Mr. Greg Dornau said.

Chief Financial Officer Jeff Barocas commented that "the financial condition of the Company is very strong. For the first time in the Company's history, it was not necessary to utilize our credit facility to finance our seasonal working capital requirements. It has been over a year since the Company utilized its credit facility. In fact, at the end of September the Company had more than $1.8 million of cash on hand. In addition the Company decreased its total liabilities by over $760,000 from September 30, 2013. Our current ratio is 4.6:1 at September 30, 2014."