Steve168, Yes, CENT might work out okay. As you know, the large intangible on book value is due largely (but not solely) to Pennington Seed. CENT lost exclusive rights to distribute Solaris products (30% of Central's sales). That and bad weather both affected stock price. Cent's strong in a number of areas - garden & pet supplies (of course), pet books, retail relationships, acquisition developments, seeds (Pennington may have developed a potential blockbuster virus-resistant grass seed). Also positive, as you mention, I see the large insider buy by the CEO.
My belief is that the stock will recover as business picks up, which I believe will occur. I hold a small amount of CENT within a diversified portfolio. I don't know what you mean by "I am holding a significant position of CENT", but THAT does sound risky to me.
JMO, and I've been wrong many, many times before.
Paul Senior |
