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Strategies & Market Trends : Value Investing

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To: Lazarus who wrote (39484)	3/2/2011 7:09:48 PM
From: E_K_S	Read Replies (2) of 78704

Hi Lazarus - Re: ARMANINO FOODS NEW (Other OTC: AMNF.PK ) finance.yahoo.com Web Site: armaninofoods.com I added another 20% to my previous position. This one has been slow and steady with an annual dividend yield now around 5% and a 28% increase in the stock price since my first buy in 10/2010. I really like the value that management continues to build in this company. Management has made 43 consecutive quarterly dividend payments in addition to nine special dividends over the same time period. They had over $500K in bank CD's at year end 2009 ready to deploy for new product opportunities. I now noticed that as of September 30, 2010, this amount has grown to over $860K (up 72% from the 2009 figure). The company has no debt, has increased sales every QTR and most recently landed some really new exciting distribution contracts in 2011. The company continues to buy back it's shares from time to time in the open market. Their 2010 results were quite impressive. The company got more efficient with their YoY and Qtr to Qtr - Net Income growth nearing 50%! Q4 2010 vs Q4 2009:..Net Sales Up 3.5%..Net Income Up 49% 2010 vs 2009:..............Net Sales Up 9%.....Net Income Up 47% Here is their full report that was released February 18, 2011. finance.yahoo.com I visited their leased company manufacturing facility (just up the road 34 miles) and it's the real thing (Google Maps: maps.google.com ). They produce a quality product w/ the best ingredients that is fresh frozen. They have recently expended their distribution points Coast to Coast (w/Dot Foods a food re distributor dotfoods.com ) from their company facility located in Hayward California. This small company (now w/ a Market Cap of $30 million) with $23 million in 2010 sales reminds me of a Warren Buffet company. They just keep plugging along, growing their revenues all accomplished from internal earnings (ie no debt). It may be selling at the high end of it's recent price range ($0.86/share) at 13x 2010 earnings however, I expect them to grow their earnings again by 35%-45% in 2011. That would make their Forward PE right around 9.5 at today's closing price. At some point, (as you pointed out) they may even be a candidate for a buy out by a larger food integrator. Thanks for the heads up back in September 2010. This is a micro-cap I don't mind holding. You get growth at a very reasonable "value" price. EKS

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