New GeoBargain on the Radar (GBR) Meritage Hospitality Group Inc. New (NBB:MHGU) engages in the operation of quick-service restaurants.  In our 8/16/2013 email we mentioned our reasons for tracking MHGU, which was trading at $4.00 at that time.  We mentioned that the company appears to be growing rapidly through acquisitions.  For example, in 2013 the company acquired 20 Wendy’s restaurants.  On 2/12/2014 MHGU reported fiscal 2013 results and provided guidance for 2014:

  • Sales increased 39.2% to $137.8 million (a new record high for the Company), compared to $99.0 million last year.
  • Net Income was $3.1 million compared to $1.3 million in prior year.
  • EPS for full year 2013 of $0.56 vs $0.24
  • EBITDA for full year 2013 of $8.4 vs $5.3 in the prior year
  • 2014 revenue guidance of 10% to 15% growth
  • 2014 net income guidance of 50% to 55% growth
  • 2014 net income guidance implies EPS for 2014 of be $0.84 to $0.87 based on 5.5 million shares outstanding

We are coding MHGU as a GeoBargain on the Radar at $4.93 as we  increase our due diligence regarding the company’s operations.

GeoBargain on the Radar Bridgeline Digital (NASDAQ:BLIN) develops iAPPS Web engagement management product platform and related digital solutions in the United States. BLIN reported first quarter 2014 results:

  • Revenues for the first quarter 2014 were $6.5 million, compared to $6.1 million in the prior year.
  • Loss per share for the first quarter 2014 were $0.04, same as the prior year.
  • The company maintains its fiscal 2014 revenue guidance of to be approximately $28 million, an increase from $24.5 million in fiscal 2013 and the Company expects to generate positive Adjusted EBITDA for the fiscal year.
  • The Company plans to announce a major contract win within the next few weeks.
  • Conference call commentary implies sequential improvement for the remaining quarters of 2014.