Dave, several people in this thread have commented on this, e.g. techstocks.com
I haven't done a lot of research on Odwalla, but off-hand I'd say they have much better name recognition (at least on the West Coast), lower-than-average profit margins (due to expansion, or something worse?), excellent but somewhat higher-priced juice compared to Hansens. I think FRSH after-tax margins are around 4% versus ODWA which is less than 3%. FRSH common stock is now 2 11/16, ODWA is 8. If you believe that FRSH can sustain and even increase current revenue, then IMHO the stock is probably a better deal than ODWA in the next two years. Five years from now, though, ODWA may have put its expansion and current legal problems far behind. Who knows.
Kevyn |
