It is that time of the year again, and here are some tidbits from the letter:
(1) the company's Chicago meat division put up a nice sales gain of 14%. That is especially impressive when considering the previous year, the division posted a 17% rise. (2) the company's unprofitable Warehouse deli division was shut down and adjustments to the Deli route operations are being made for improvement. (3) Its DSD or Direct Store delivery distribution system saw its average sales per route increase, and is looking to add to that momentum by increasing its presence within the convenience store segment (4) sales at walmart have continued their robust growth, rising 330 basis points from the previous year. They now account for 19.6% of the company's total sales versus 16.3% the previous year. Dollar General is BRID's next largest customer, amounting to 9.9% of its total sales. (5)The company is aggressively targeting the public school business by introducing healthier alternatives. BRID has developed bread products that utilize white whole wheat flour, that is healthier, but still tasty for students. (6) The company is the sole supplier of Biscuits to IHOP (7) is introducing a 2 pack single serve of monkey bread to the retail trade.
Buy the dip, The company is in the midst of a successful turnaround as evidenced by a great second quarter report. Both Zack's and Roth Capital are still high on this stock
Talk about a low volume stock. So far today, only 1 share has changed hands @ $9.97 per share...that's a mere $10.00 worth. This stock is extremely hard to buy, and extremely hard to sell. It's large spread ( about 5%) will eat you up, as a prospective buyer has to hit the ask when buying shares, while the seller has to hit the bid. Just think what would happen to the stock if it got included in the Russell 2000 index? My guess? About a 50% rise in less than 30 minutes.
time to buy the dip. This one always bounces back after a selloff.
inquiring minds want to know...what's the sweet spot for buying PBY? It seems like every time it dips, it roars back with the help of Gabelli buying...what's your take? Do you think they finally will beat expectations when they report their 4th quarter? Personally , I'd love to see the stock to go back down to $9, so I could really load up the truck and hit a grand slam, when it ultimately goes back to $15
BRID filed its 10K today after the market closed...solid report, but not spectacular....sales increased 1.3% from $127,355,000 to 129,000,300 despite the reporting period dropping from 53 weeks to 52 weeks. Gross profit margin rose 40 basis points form 34.8% to 35.2%. while SG&A costs jumped 5.1% from $40,280,000 to $42,352,000 ( this added cost resulted in the replacement of delivery fleet vehicles to the tune of $1.7 m). This increase was the main driver in BRID's earnings drop (they fell 20% from 40 cents per share to 32 cents per share).
The company also purchased back 20,000 shares and as a result their share count was reduced from 9,182,738 shares to 9,151,939 shares. Look for the company to declare an 8 cent cash dividend soon. First quarter results will be released in just six weeks, while the company's Annual Meeting will be held this March, so there are still plenty of catalyst left to fuel the stock.
It appears that BRID is getting traction in both CVS and Wal-Mart in gaining shelf space (this is what I have noticed by visiting the stores). Hopefully we will see this translate to the top line, when BRID releases its 4th quarter results this Friday.
BRID's market cap of $92.5 million is just $7.5 million short of being included in the Russell 2000 index. If it happens, Funds will be required/forced to buy the stock. With such a tiny float, that additional buying could cause the shares to soar!
one correction to add: There is zero chance of a short squeeze materializing. There are a mere 2200 shares short. That is as low as I have ever seen on any stock.
Buy on any pullback, as the stock is stuck in a very predictable trading range of $9.50 to $11. Next month the company will be reporting its 4th quarter results, which could be the catalyst for the stock's next leg up and a nasty short squeeze.
FARM granted options to purchase 80,000 shares @$21.33 per share to its top four executive officers. This will give them plenty of incentive to make darn sure the stock moves above this threshold.
It is better to cover your short today at $21.90, than to be forced to cover it at $25 next week. These low float stocks have a tendency to be squeezed big time.
The market seems to like the press release. Shares spiked when the tea news was released. A run to $22 by the bell is in the bag.
It makes sense that they would try and sell it when it is running on all eight cylinders-that's how you attain top dollar. There is no doubt that their turnaround program has been wildly successful by Wall Street's view of the share's.Not sure how much of a premium they could extract at this juncture, but 20% seems reasonable.
Time to buy the dip. Every time the shares selloff, buyers rush in to scoop them up. Besides, we are getting very close to another Roth Capital price target increase. You have to go with the trend. Even the Farmer sisters have not sold a single share, despite the stock rising three fold.