Catching the Wave of Summer
In a deal expected to shatter 2006 revenues by nearly 500% and facilitate second quarter gains that outweigh those of '04 through '06 combined - Challenger Powerboats Inc. (OTCBB: CPWB) announced today what we believe to be one of the largest contracts in company history.
Sure looks like the IMAR Group acquisition back in January was worth its weight in gold. Recent news out of CPWB notes a mammoth order for 53 boats in total - 36 Sugar Sand and 17 Gekko - worth an estimated $1.4 million. These sales simply wouldn't have been possible for Challenger without scooping up IMAR, which generated un-audited, unconsolidated '06 revenues of $12 million.
Before we get to how far CPWB has come from an operational standpoint over the past 6-12 months as well as the CEO's take on recent expansion. . . let's talk money.
Challenger logged a commendable $1.6 million during the first quarter of '07 and judging from the company's past three news releases highlighting boat orders this quarter, has executed deals worth as much as $2.2 million thus far in Q2.
Challenger logged a commendable $1.6 million during the first quarter of '07 and judging from the company's past three news releases highlighting boat orders this quarter, has executed deals worth as much as $2.2 million thus far in Q2.
Revenues from recently publicized deals alone would drive quarter-over-quarter growth of approximately 35%. Pretty serious advancement for a company that recently underwent a massive corporate restructuring and logged Zero revenues for the quarter ended 9/30/06. Looks like new management really knows what they're doing over there.
If Challenger, priced under a nickel, is capable of executing single transactions just months into the summer season that bring in 500% more revenues than were logged all of 2006 and is showing promise to deliver year-over-year growth of 4,000% - 5,000%, shouldn't it be part of your speculative portfolio?
Off To The Races!
Now, if the trend toward significantly improved revenues on a quarterly basis continues, at least to some extent, as CPWB builds a more entrenched market position - we could really have something phenomenal o
n our hands by the end of '07.
Now, if the trend toward significantly improved revenues on a quarterly basis continues, at least to some extent, as CPWB builds a more entrenched market position - we could really have something phenomenal o
n our hands by the end of '07.Think about it. Even if we assume very conservative quarter-over-quarter growth for the remainder of '07 (Q3 & Q4), say 10% - Challenger would derive annual revenues of about $8.7 Million. This would representt Y-O-Y growth of 3555%! Even more interesting, said revenues would trump those earned during 2004 through 2006 - by $6.5 million.
CPWB: Growth Story of the Year?
CPWB: Growth Story of the Year?
This type of growth and potential for expansion, although like finding a needle in the proverbial micro-cap haystack, is exactly what you should be looking for in the world of BB stocks. We've had our eye on Challenger Powerboats for quite awhile now, and it looks like the company has really upped the ante and is ready to make the jump from niche boating supplier, to a viable industry competitor.
You got the independent take - now let's hear it from the company:
Challenger's president and CEO, Laurie Phillips, stated, "The market is beginning to recognize the quality of our boats and their competitive price points. Our increased distribution effort is starting to have a positive impact on sales volume, and interest in our boat lines is growing both here and overseas." Ms. Phillips, added, "The Company's marketing advantages include quality, leading-edge engineering, and competitive cost of ownership. We believe these attributes are paramount to securing a critical mass in market share. Concurrent with our increased marketing and sales effort, we are in the process of heightening our cost management discipline in an attempt to maximize gross margins. In addition to increasing sales, we intend to expand gross margin to further our drive to profitability."
Challenger's president and CEO, Laurie Phillips, stated, "The market is beginning to recognize the quality of our boats and their competitive price points. Our increased distribution effort is starting to have a positive impact on sales volume, and interest in our boat lines is growing both here and overseas." Ms. Phillips, added, "The Company's marketing advantages include quality, leading-edge engineering, and competitive cost of ownership. We believe these attributes are paramount to securing a critical mass in market share. Concurrent with our increased marketing and sales effort, we are in the process of heightening our cost management discipline in an attempt to maximize gross margins. In addition to increasing sales, we intend to expand gross margin to further our drive to profitability."
If Challenger, priced under a nickel, is capable of executing single transactions just months into the summer season that bring in 500% more revenues than were logged all of 2006 and is showing promise to deliver year-over-year growth of 4,000% - 5,000%, shouldn't it be part of your speculative portfolio?
Labels: Challenger, Challenger Powerboat, CPWB, OTCBB: CPWB
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