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Thursday, December 9, 2010

The Armanino Dividend

Armanino Foods of Distinction (AMNF on the pink sheets) is out with their dividend announcement. The company raised its regular dividend by 21% to one cent per quarter. At the current price of the stock (72 cents), that is a return of 5.6% on the dividend alone. The Chairman of the company is also quoted iin the press release as follows: “We are having an exceptionally strong year and think we should reward our shareholders accordingly. Our balance sheet remains very strong.” Given the conservative nature of the Armanino board, it seems safe to assume that the net profit for the current quarter should be at least as much as last quarter. this further reinforces the estimate of 9 cents per share for the next twelve months. thus, the stock is selling at 8 times earnings with a dividend of 5.6%. the stock remains very attractive at current levels.

2 comments:

john patrick said...

I hopped in today with a small position. I liked the web site and the products and dist. looked ok.
Iplan to collect the div. and wait.
Do you think they can expand out of the west?
I discovered you from the entr yahoo mess. board... could that be you posting? Anyhow looks like you can
discover micros... i'll be watching

Marc said...

Thank you for covering Armanino. I have been a shareholder since 1988 when it was a shell company "falcon fund" It is interesting that it is still strong after ex-div and before the feb earnings release. Usually that is both a price & volume lull, so I am interpreting current action as constructive to your target of $1.30