Converted Organics (COIN) Reports Big Growth In Organic Fertilizer Sales

Converted Organics (COIN) never misses an opportunity to issue a positive press release and they were at it again this morning saying that sales have increased 200% in the pro lawn care market vs the same period last year.  Total company revenues were only $490K in the year ago quarter, so it wouldn’t take much to achieve 200% growth, but a decent milestone for a small company and just maybe they will crack the $1 mill revenue mark in a quarter very soon.  My prediction is Q2.

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On April 13th, the company announced that Q1 revenues increased 65% over the year ago period which gets them to about 800K for Q1 which I believe would be a record for the company.  Then on May 6th, the company announced that it had achieved a new monthly record for revenues with $658K.  I’d imagine the month of April is one of the strongest for the company as many fertilize around this time, but they should be able to hit $1 million in Q2. 

I don’t see an official earnings date, but it looks like they will report within a week or two.  If anyone has an official date please post it in the comments. Thanks!  I might take a shot and put on a small position going into earnings.

VP of Marketing David Flannery commented on the increasing demand for organic fertilizer:

“Increasingly, lawn care companies are getting customer requests for all-natural, organic based programs as opposed to synthetic chemical fertilizer programs, because they are perceived to be safer. Until now, organic fertilizers available to lawn care companies are derived from chicken waste or bio-solids (treated sewer sludge), both of which possess inherent weaknesses, such as odor, low coverage, and negative public perception, which leave many companies on the hunt for a better organic fertilizer product.  The all-natural, organic formula of Converted Organics is produced from recycled food waste and is manufactured in dry, granular formulas for professional lawn care applications.”

Surprisingly, shares of COIN didn’t move much on the news today, but continue to look quite bullish.  A breakout and hold above 1.27 would be a very bullish breakout. 

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