Let's put emotions aside and have a close look at the information presented in the report. I only focus on the sales figures:
1. This is only sales excluding transfer of IPs. By itself the sales has increased by about 10%;
2. I assume ANO uses Accrual Accounting instead of Cash Accounting. Accrual Accounting records the sales when it occurs and cash accounting records the sales when it receives payment. If they use cash accounting, the sales would become 14,576 (13745+831) for 2023; 11673(12504-831) for 2022. So the sales has increased by about 24.8%
3. Please see below their outlook for 2024, if 20MT is expected in 2024, it would transfer the sales to $18,326,000, which is on par with 2020's . 4. FDA proposed rule of sunscreen ingredients in 2021 is reviewed in this month Sept and will have result in the near future. If the final ruling is the same as the proposed ruling, it will have very positive impact on the sales
5. the management has identified 3 more markets (texitle, rubber, agri) for zinc oxide. it will have positive impact on the sales in the future
2019 price of $7 was purely based on good news and high expectation of the future. That's why I said that price movement is emotional not rational. Now the price has come back to the reality. my guestimate is that the price might be close to bottom out.
ANO Price at posting:
81.0¢ Sentiment: Hold Disclosure: Held
