I have bought quite a few shares in the last several days. The reason? Tofutti products are wonderful! If you haven't tried them, please do. Beyond that, they don't own any of the plants that make their products--they contract manufacture with other food companies; this means they have basically no investment in expensive plant overhead, employees, etc. I've also been shopping around and they have excellent distribution in Trader Joe's (who is their biggest customer at 22% of sales in 2003). Trader Joe's is an OUTSTANDING store chain, so as they grow, Tofutti will grow with them. Same applies to Wegmann's, which has the broadest line of Tofutti products available. Wegmann's is a wonderful store which is growing rapidly, so Tofutti will grow along with them. And the lactose-intolerant market is growing and Tofutti products appeal specifically to that area. Essentially, the way I look at it is: Tofutti has a terrific, broad product line with surprisingly good distribution. They just need more consumer awareness to move more of their product through that pipeline. If they just muddle along like they've been doing the stock will stay around where it is; but if they get broader awareness, the stock could easily go to 10 or 15. That's why I bought.
How could you possibly know that 22% of the company sales are from Trader Joe's. If that is the case you gave your competition a competitive edge. You can "buy business" via slotting costs in this industry. If what you state is true a quarter of there business can be taken away with one mighty swoop.
I have a simple question for the nutritional experts on this board. Namely, since their products are made from tofu which is a soy derivitive in the processing are the isoflavinoids damaged or diminished in effectiveness and has the company produced any studies about these potent anti-oxidants?