Leading Brands (NASDAQ:LBIX) reported its fiscal first quarter results on July 10 for the period ending May 31, 2014. Gross revenue was crushed 24% to $3.9 million. Earnings per share were even worse, down 76% from $0.24 to $0.06 per share. There were no statements in the earnings release regarding an explanation, excuse, or any sort of optimistic comments going forward. It was a bare bones release.
The one positive takeaway might be this statement from the company: "The Company believes that its common share price remains undervalued and will continue with its share repurchase program which now has approximately USD$599,000 remaining authorized under it." But then again, the company only bought back 600 shares last quarter compared to previous quarters when it was more aggressive. It's not exactly a heavy note of confidence.
In my previous Leading Brands article entitled Leading Brands Ripe For Big Soft Drink Buyout, I was very excited about the company's prospects for its new Happy Water product line. Leading Brands seems very excited about this product line and talked it up for several quarters. Now it's not even mentioned in the press releases at all whatsoever as if all of the Happy Water just suddenly dried up. I'm still watching the company just in case but I find the results very discouraging. I have changed my view from one that is bullish to one that is bearish accordingly.
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