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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: Mark Kubisz who wrote (949)	1/9/1999 1:15:00 PM
From: telecomguy	Read Replies (1) \| Respond to of 2453

This stock has to be one of the better Value plays out there. I have looked carefully at their financials and their strategic direction - which they have been implementing to a tee in the past year. I think that the Serruya brothers are not content to stay as a profitable niche Frozen Yogurt small-cap. It is obvious to me that they are trying to build an international Frozen DESSERT company that can compete with the Netstle's of the world. If they pull it off, this stock could be worth 10 to 20 times what it's severely undervalued stock price is at. Remember that they have much wider distribution channel now (with Integrated Brands purchase) and full manufactuing capability. The former will allow them shelf space and to leverage their existing product sales volume. The latter will increase profitability and quality of their product. I suspect that the reason why they have been relatively quite in the past 6 month was that they were extremely busy merging Integrated Brands with Yogen Fruz. To me this is a sign of prudent management. No point doing more deals until each major acquisitions are properly integrated to fully optimize the deal's potential. Withe merger completed, YF now is again on an acquisition trail with the Eskie Pie foray. To me, everything that they are doing makes so much sense. Let's see; 1) They parlayed a small Yogen Fruz retail outlet into one of the biggest Franchisors with incredible international distribution in a few short years 2) They take that profit and start diversifying into US and into other frozen dessert products (e.g. ice cream) 3) They "buy" distribution channel with the Integrated Brands purchase 4) Meanwhile, as they are expanding at breakneck speed (buying mfg facilities, consolidating other Yogurt/Ice Cream franchisors, etc.etc.), they continue to turn profit and positive cashflow to a point where they have ZERO DEBT and 30 million in warchest to go after more inefficient companies So what do the market do? They bring the price down from $14 to $4 !!! All because of butterfat price (temporary aberration), Asia/South America meltdown, and an esoteric argument about an accrual entry to recognize 5 million in sales - most of which ended up being collected. I can't think of any company with such a string of profitability, capacity for growth and demonstrated ability to manage their growth as Yogen Fruz. Right now I think YF is at an earnings multiple of 14.8. This is extremely ridiculous. Butterfat price is coming down, Asia will surely recover (already half way there), and YF will realize huge revenue increases and margin improvement through their past acquisitions. Why are the institutions not seeing the Value that is clearly there. I sold all my Internet investments (made 500% return in 1 year) and bought $200K worth of YF stocks this past month. Why? Internet is so volatile - I could lose all my crazy profits in one bad week. YF has almost AS MUCH upside in the next couple of years as anyone of the I-Net stocks BUT WITH VIRTUALLY NO DOWNSIDE RISK! Their balance sheet is extremely strong, they have VERY aggressive mgmt (Serruya brothers) who have global ambitions and they've accomplished the hardest part of turning a start-up into a reasonably solid/large multi-national food company. NO RISK -- HUGE UPSIDE. Seems to me - this investment is as obvious as they come. If YF doesn't generate minimum of 100% return in the coming year - I will forever refrain from trying to understand the equity market and stop investing based on fundamental analysis!