"Sherwood Brands (SHD 5 ASE) manufactures brand name candies, cookies and chocolates, including jelly beans, lollipops, biscuits, soft and hard candies and assembles seasonal gift items," says Joseph Dancy (LSGI Technology Market Letter, members.aol, (972) 780-1805, 8/01).
"Revenues grew 39.2% in the last four quarters. The trailing P/E is below 10, the price/sales ratio is below 0.3, and the price/book ratio is 1.5, all valuations substantially below the average for S & P 500 firms. According to the Department of Commerce, domestic shipments of confectionery products have grown steadily from
approximately $9 billion in 1990 to $15.2 billion in 1998. The Chocolate Manufacturers Association/National Confectioners Association estimated total retail sales of confectionery products in the U.S. in 1998 of approximately $23.5 billion. Despite this growth, the U.S. ranks only 9th in per capita candy consumption
among industrialized nations. Sherwood is positioned to take advantage of the expanding
market, and is focusing on introducing new products in these market categories, as well as
achieving greater brand recognition and market penetration. A large part of the market is highly fragmented, with numerous manufacturers and hundreds of products and distribution channels. Its experience in these markets and
distribution channels, coupled with its manufacturing capabilities, positions it to capitalize on growth
opportunities. Buy below $6." |
