Graham -
Check out news/earnings release for SZA..in spite of higher butterfat costs, this company posted impressive numbers last Nov. 6. I expect YF will do the same, but there could be some squeeze on margins from their ice cream acqusitions. This does not take away from increased volumes in their overall brands, incl. acquired Integrated Brands' Betty Crocker, Yoplait, etc., which I am hoping will more than make up for the increase in butterfat prices which came late in the third quarter.
Yogourt, as I undertstand it, uses little (if any?) butterfat anyway.
The Globe & Mail's Angela Barnes will be running a story on YF tomorrow but I am afraid I cannot supply any detail here. Hopefully, however, it will draw attention to this grossly under-valued/oversold company and we see a nice gap up tomorrow.
I hope in their article they mention the fact that, last year, 65% of YF's revenue was derived from international markets (currently under pressure) whereas this year the U.S. market alone accounts for 75% of their revenue streams.
Of particular interest is the fact that today's Globe & Mail "Market Movers" might have given the impression that big fund managers such as Altamira were currently disposing of their position in YF, when in fact Altamira sold most (if not all) of their position over five months ago. According to my sources, Susan Coleman of Altamira expressed her apologies to Michael Serruya (co-Pres. YF) regarding the article, which may have accounted for the rather large retail sell-off today (I did not see any large blocks being traded ...a good sign other insititutions are still holding onto their stock).
Regardless of whether the stock moves this week or next month, I continue to have faith in the product(s) and so will remain long until YF returns to target price of $15-16 (my own target, plus that of some fund managers).
As for an entry price, I disagree with contents of newsletter published...believe YF to be a fantastic buy at any price under $7.00, for a 100% return within 12 months or less, even possibly by RSP season, given that Russell 2000 and other small caps are making a very strong comeback.
Regards,
NOK |
