The recent stock price action perhaps answers the question on the insurance money. $3.9m proceeds received in quarter, included as part of the 1.3m net income.. I have no idea how the insurance payout was calculated, almost certainly not based on net income potential. I just hope it wasn't based on gross income, as that could potentially mean a $2.6m operating loss(?), bolstered by this once off payment.
What disturbs me is the June quarterly hinted that it was lower than expected because "Also included in the expense payments for the Quarter ended 30 June 2013 was over $1m in raw material and processing cots related to the biodiesel inventory build for the second export shipment. This shipment is due for departure late August 2013."
So in the absolute worst case, the operating loss (by excluding once off income unrelated to the quarters activities) could be in the ballpark of 3.6m.
The next statement will reveal all I guess, no special items in there to confuse matters. Any mention of 'building stock inventory' moving forward, as a way of justifying lower than expected net income, should raise major alarm bells.
TEK Price at posting:
70.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)