mrmarket
10-24-2003, 02:13 PM
Did you ever go to a bar to watch a football game and the game is really good and you get all excited? So you start drinking 1000’s of beers and you get all hammerhead sharked? Didn’t you wish you had some nuts to eat while you were pouring down that trania? No, I’m not nuts. Nuts are most excellent. High in protein, low in carbs. Peanuts, cashews. Pecans, pistachios, I’m getting hungry.
Here is a quote from a reknowned plastic surgeon in South Florida who has an enormous bench press, “ Sports and nuts are like soap and water. I love to eat nuts on the weekends. By Monday morning my stool looks like a holiday nut roll. Nutritionally speaking the nut has it all..protein, essential oils, speaking of oil I have terrible ass oil today. I am not sure if it was the steak Quesadia, the buffalo wings with plenty of blue cheese , or the 35 vodka's and cranberries I had at the world series last night. One thing for sure it wasn't caused by the nuts... those babies passed through as pristene as newly fallen snow. So go out and make your colon happy and eat a bag of nuts.”
Remember when Muhammed Ali fought Larry Holmes and he said Holmes’ head looked like a peanut?
Today I bought JBSS (John B. Sanfilippo & Son, Inc.) at 28.37. I will sell it in 4 to 6 weeks at 32.86. Here is why I like JBSS.
First of all, I want to give credit where credit is due. Although JBSS has popped up on my database from time to time, our very own Lizzard King did bring it to the attention of all of the $$$MR. MARKET$$$ members only most recently. So kudos to the great Liz….go visit his website: http://groups.yahoo.com/group/Lizard_Kings_Trading_Swamp/
But this isn’t the only reason I like this stock. JBSS stock is up 294% in the last 12 months yet its PE is only 13.1. That’s really good value for such incredible price momentum.
John B. Sanfilippo & Son (JBSS) processes, packages, markets and distributes shelled and in-shell nuts, sold under a variety of private labels and under the company's Evon's, Fisher, Snack 'N Serve Nut Bowl, Sunshine Country, Flavor Tree, and Texas Pride brand names. The company also markets and distributes, and in most cases manufactures or processes, a diverse product line of food and snack items, including peanut butter, candy and confections, natural snacks and trail mixes, sunflower seeds, corn snacks, sesame sticks, and other sesame snack products.
I’m not the only one that likes it. Officers and directors own 75% of the Class A common stock. The company expected sales and earnings growth to continue through the FY 04 first quarter. Recently, the company has focused on efficiency and cost control efforts allowed the company to capture an increasing portion of the gross margin that was generated by their recent sales increases, as selling and administrative expenses rose by only $2.3 million, while net sales increased by $65.3 million.
Sales growth has really taken off for these guys. I expect them to do $500 million in sales in 2004 which will give them annual earnings of $2.59/share. Even with their super low PE of 13.1, this translates to a stock price of 33.93 which surpasses my target sale price.
JBSS has been aggressively paying down debt. In fact, its debt is less than half of what it was 5 years ago while it has expanded its asset base. % Long Term Debt of Capitalization has shrunk from nearly 50% to around 19%. This has helped its return on assets grow to 7% and its Return on Equity move up to 13.6%. This compares to an industry ROE of only 7%.
But the best news is its most recent news and that’s why I think this stock can be very hot.
Sales jumped by more than 30 percent in the latest three months to $121.7 million from $93.1 million in the same period a year earlier. The company attributed the strong results to the increase in sales, and an improvement in gross margins to 18.5 percent from 11.9 percent.
Here’s what Mr. Peanut had to say himself:
"There is definitely a substantial increase in the consumption of
nuts and products containing nuts as evidenced by our first quarter
results and the consumption data that we receive from A.C. Nielsen,"
noted Jasper B. Sanfilippo, Chairman of the Board and Chief Executive
Officer. "This initial quarter of fiscal 2004 should be the prelude to
another successful year. However, the Company will not rest on its
laurels. We will continue to meet the increasing consumer demand for
nut products and continue to focus on benefiting from the message that
the frequent consumption of nut products can deliver meaningful health
benefits for consumers. As stated in our recent annual report, we will
also explore the possibility of consolidating our operations in order
to gain further processing efficiencies and to support the growth
trend that the nut category has enjoyed," concluded Mr. Sanfilippo.
Bong bong bong!! Whoooop! Whooop! Did you hear what he said? Consolidation?? I smell a takeover.
JBSS P/E is 13.1 which is extremely low compared to the Industry PE of 24.5. Just getting its true PE value alone will probably double its stock price. Only one analyst is following this stock now (with a “buy” rating)…certainly when sales grow to $500 million, more will follow with similar ratings. Not that $$$MR. MARKET$$ listens to analysts who did not attend Wharton, but the rest of the world does seem to take notice when new recommendations are published.
No, I’m not nuts but I think I’ll eat some more.
Here is a quote from a reknowned plastic surgeon in South Florida who has an enormous bench press, “ Sports and nuts are like soap and water. I love to eat nuts on the weekends. By Monday morning my stool looks like a holiday nut roll. Nutritionally speaking the nut has it all..protein, essential oils, speaking of oil I have terrible ass oil today. I am not sure if it was the steak Quesadia, the buffalo wings with plenty of blue cheese , or the 35 vodka's and cranberries I had at the world series last night. One thing for sure it wasn't caused by the nuts... those babies passed through as pristene as newly fallen snow. So go out and make your colon happy and eat a bag of nuts.”
Remember when Muhammed Ali fought Larry Holmes and he said Holmes’ head looked like a peanut?
Today I bought JBSS (John B. Sanfilippo & Son, Inc.) at 28.37. I will sell it in 4 to 6 weeks at 32.86. Here is why I like JBSS.
First of all, I want to give credit where credit is due. Although JBSS has popped up on my database from time to time, our very own Lizzard King did bring it to the attention of all of the $$$MR. MARKET$$$ members only most recently. So kudos to the great Liz….go visit his website: http://groups.yahoo.com/group/Lizard_Kings_Trading_Swamp/
But this isn’t the only reason I like this stock. JBSS stock is up 294% in the last 12 months yet its PE is only 13.1. That’s really good value for such incredible price momentum.
John B. Sanfilippo & Son (JBSS) processes, packages, markets and distributes shelled and in-shell nuts, sold under a variety of private labels and under the company's Evon's, Fisher, Snack 'N Serve Nut Bowl, Sunshine Country, Flavor Tree, and Texas Pride brand names. The company also markets and distributes, and in most cases manufactures or processes, a diverse product line of food and snack items, including peanut butter, candy and confections, natural snacks and trail mixes, sunflower seeds, corn snacks, sesame sticks, and other sesame snack products.
I’m not the only one that likes it. Officers and directors own 75% of the Class A common stock. The company expected sales and earnings growth to continue through the FY 04 first quarter. Recently, the company has focused on efficiency and cost control efforts allowed the company to capture an increasing portion of the gross margin that was generated by their recent sales increases, as selling and administrative expenses rose by only $2.3 million, while net sales increased by $65.3 million.
Sales growth has really taken off for these guys. I expect them to do $500 million in sales in 2004 which will give them annual earnings of $2.59/share. Even with their super low PE of 13.1, this translates to a stock price of 33.93 which surpasses my target sale price.
JBSS has been aggressively paying down debt. In fact, its debt is less than half of what it was 5 years ago while it has expanded its asset base. % Long Term Debt of Capitalization has shrunk from nearly 50% to around 19%. This has helped its return on assets grow to 7% and its Return on Equity move up to 13.6%. This compares to an industry ROE of only 7%.
But the best news is its most recent news and that’s why I think this stock can be very hot.
Sales jumped by more than 30 percent in the latest three months to $121.7 million from $93.1 million in the same period a year earlier. The company attributed the strong results to the increase in sales, and an improvement in gross margins to 18.5 percent from 11.9 percent.
Here’s what Mr. Peanut had to say himself:
"There is definitely a substantial increase in the consumption of
nuts and products containing nuts as evidenced by our first quarter
results and the consumption data that we receive from A.C. Nielsen,"
noted Jasper B. Sanfilippo, Chairman of the Board and Chief Executive
Officer. "This initial quarter of fiscal 2004 should be the prelude to
another successful year. However, the Company will not rest on its
laurels. We will continue to meet the increasing consumer demand for
nut products and continue to focus on benefiting from the message that
the frequent consumption of nut products can deliver meaningful health
benefits for consumers. As stated in our recent annual report, we will
also explore the possibility of consolidating our operations in order
to gain further processing efficiencies and to support the growth
trend that the nut category has enjoyed," concluded Mr. Sanfilippo.
Bong bong bong!! Whoooop! Whooop! Did you hear what he said? Consolidation?? I smell a takeover.
JBSS P/E is 13.1 which is extremely low compared to the Industry PE of 24.5. Just getting its true PE value alone will probably double its stock price. Only one analyst is following this stock now (with a “buy” rating)…certainly when sales grow to $500 million, more will follow with similar ratings. Not that $$$MR. MARKET$$ listens to analysts who did not attend Wharton, but the rest of the world does seem to take notice when new recommendations are published.
No, I’m not nuts but I think I’ll eat some more.