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Armanino Foods of Dist. (ARMF) Message Board

  • stockanalysis_101 stockanalysis_101 Mar 15, 2004 5:58 PM Flag

    Question for the board

    I do not own any shares in ARMF and have just started looking at it.

    1. Why should I own this stock?
    2. Why should I avoid it like the plague?

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    • I frankly don't know of any reason that you should definitely own this stock nor do I know of any reason that you should avoid it. If you're looking for a reasonably safe place to put some bucks away and are happy with a yield in the mid to high 5% area then buy some. Be aware that it's thinly traded so, if you buy, you should be thinking buy and hold and not expecting to trade it. You can't play dividend capture games with this one, not because it doesn't cover the divvie pretty quickly after ex-day, but because you can't cover the bid / ask spread.

      Also look at PMID which is similar although PMIDs divvies have been qualifying as return of capital so you don't pay any taxes on them at all but instead use them to reduce the basis of your holdings. PMID is also thinly traded and is only good for a buy and hold approach.


    • Reasons to buy:

      6% dividend
      Occasional "special" dividends
      No Debt
      Stable company: public since late 1980s
      May be sold someday

      Reasons to avoid:

      Slow revenue growth
      Low visibility in investment community

      so, a good stock for a small position

    • I have the same questions.