The company now hires CEOLIVE to interview it and the stock goes nuts.
Among the highlights:
- The CEO, Peter Dornau calls performacide a "Miracle Solution" that kills every germ known to man. (At 13:20)
- "2015 is shaping up to be too good to be true"
- 5 puppies died in a vet clinic the week before our product was used, "we sprayed down the facility no dogs died whatsoever" (At 11 min) All these areas where the germs are unbelievable -- sales potential is unbelievable. We could go after horse care, cattle care farm care) (12 mins)
- We are going to attack those markets but there are so many we can't really do it at once. Sure Peter.
- "It's almost mind boggling where it could be used."
- My personal favorite, they are going after police departments "because everytime they knock someone over the head, god only knows what type of disease he has (8:30)
- "If you look at our balance sheet it is not a true balance sheet" Peter reasons because their equipment can't be replicated for less than 20 Million they are worth really worth 20 Million more. (17 mins)
- Do they even know what a balance sheet is?
- "oh my god, there is so much potential here"
- We're exploring the market where women can spray our product on strawberries and they'll stay good for weeks.
In short, the company expects that performacide is going to be in an "ass of a lot of places"
I am skeptical of any company that needs to pay for promotion. I've never seen a company not sell off. About CEOLIVE
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Sounds objective. So about this miracle product, which OBCI bought for just 150K a few months ago. They claim that this is the game changing, "miracle" product? The active ingredient has been around for over 50 years. The so-called miracle is that OBCI has a packaging pouch that anyone can used.
OCEAN BIO-CHEM (NASDAQ: OBCI) is a client of CEOLIVE.TV. OBCI paid CEOLIVE.TV for video content services, which includes the preparation of CEO interviews. The CEO interviews are prepared for informational purposes only and are paid for by the company portrayed in the interview." "
Nope, not going to happen. According to the CDC:
"Ebola is killed with hospital-grade disinfectants (such as household bleach)"
Heck, just in my basement, I already own at least 3 cleaners which I've owned for years that could kill Ebola:
Simple Green D (my wife likes organic shit) but again it would serve the same purpose
Ideal for airplanes, airports, athletic facilities, cafeterias, clinics, day care centers, emergency vehicles, exercise facilities, food service facilities, hospitals, hotels and motels, kitchens, locker rooms, nursing homes, prisons and correctional facilities, public restrooms, schools and colleges, anywhere cleanliness and disinfection are necessary.
Clorox Bleach. Perhaps most significant regular, ordinary bleach will kill ebola. No body needs to turn to some cleaner they've never heard off out of fear, They can go to the products they already buy such as Clorox Bleach, which is more than capable of killing ebola.
In fact, the company has already donated 12,000 bottles of Bleach to fight ebola:
"This week our company took a first step, donating 12,000 64-ounce bottles of Clorox® bleach destined for West Africa. "Incidentally, Clorox's initial donation has a market value of nearly the entirety of OBCI's purchase of performacide.
Consequently, I would question whether there will be any uptick in profits at all. Any revenue OBCI receives would be mere fraction of the purchase price it paid for Performacide. Obviously, if performacide were generating 150K in profits a year, it would have sold for a multiple of its earnings (P/e ratio).
"Solution will be usable in 60 minutes (1 hour).So we have an Ebola outbreak and I have to choose how to clean it up. Do I go with the product such as bleach that can be used immediately or do I pick Performacide which I have to wait an hour to use?
NOTE: Allow ONE (1) HOUR BEFORE USE TO ENSURE SOLUTION REACHES FULL STRENGTH. Be sure to agitate upon addition of the pouch to the water and before initial use. Temperature must be kept between 20-25oC. "
Another reason I do not see a buyout is that the company insiders rely heavily inn the company for income. In addition to their salaries there are a number of "Related Party Transactions" that app are to make more for the insiders than their OBCI day jobs:
In the CEO LIVE interview, the company says it is expanding its warehouse space. Perhaps the CEO needs some more rent money.
These types of transaction should always raise red flags. Frankly, If I were a shareholder I would question the property of such transactions. If these deals are worth doing, why isn't management doing them for the company instead of for themselves. Got fiduciary duty? Well at least we know that management would be insured against such a claim from the policies they purchased from their director's company.
I've worked with numerous private equity groups. There is no way that investors are going to buyout a company that has all these additional contracts to benefit management's own companies. I would also suspect that management has no interest in selling given the deals their own companies are making off the backs of the OBCI shareholders.
Q2 results that saw EPS growth of 137% doesn't that demonstrate huge growth? not so much turns out. --- Consider Q1 Revs. Down pretty big.
So what happened? Well it turns out that Q1 was pretty cold in most parts of the country and customers delayed their purchases that they would have made in Q1 to Q2-- so Q1 looked horrible and Q2 looked amazing. Combine q1 and q2 them Q13 had 14.49 mill versus 14.72 mill in revs for Q1. Not exactly setting the world on fire with that type of growth.
In q3, how did this ground company perform?: Revenues were down YOY.
Trade the fade.