Thursday, 23 July 2009

IWG On The Hunt in Weak Markets

International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million
Fully Diluted: 46.5 million

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International Water Guard (IWG) reported lower sales in its fiscal 09 third quarter (June 30)but despite the economic slump, it showed an impressive 23 % sales increase over the nine-month period.

The nine-month net earnings showed an eqaully impressive gain, moving from a loss of $137 thousand in the first nine months of Fiscal 2008 to positive net earnings of $122 thousand in the current fiscal year's nine-month period.

Given it's relatively good performance, IWG President and CEO David Fox said he is taking a multi-pronged approach to driving growth.

Most interestingly, he is on the hunt for "opportunities" created by the general economic slump. He's saying little more than that but a first-year business student might conclude he is on the prowl to acquire promising companies in the aviation sectors that have been wounded by the economic downturn.

I'll leave it to you to decide after reading Mr. Fox's full quote that was contained in IWG's third-quarter report:

"Looking forward, we are moving with caution in terms of our cost base while increasing our sales activities and investigating opportunities that are being uncovered by the downturn."

Third quarter sales ending June 30th were $1.1 million, off 11% from the same quarter in the previous year.

As mentioned earlier, the nine-month period looked much better; sales totalled $3.6 million, up 23% from the same nine-month period in the company's last fiscal year.

"Our performance over the first nine months of the year has been good, in particular considering the generally negative industry climate," Mr. Fox said.

To read the full news release, please click here.