I have written many times on this blog about Armanino Foods of Distinction (symbol AMNF on the pink sheets.) Armanino makes Italian frozen and prepared foods and pasta. It has been growing steadily both in revenues and profits for years. Today, the company announced a 20% increase in its quarterly dividend which, based upon the current price, raises the dividend yield from 5% to 6% per year. That means a very nice return while holding the stock. Even more important, the company described the reason for the increase as resulting from continuing successful growth. Here is the quote from the Chairman of the Board, Douglas Nichols, "We are having an exceptional year and think we should reward our shareholders accordingly. Our balance sheet remains very strong.”
Over the years, Armanino has generally understated its performance. That means that Nichols' words are doubly important. He is giving a glowing description despite the past practice of downplaying success. As a result, the prospects for the next quarterly earnings report have improved substantially. The company already had record earnings and revenues for the first six months of the year. More good news would give the stock a substantial up side in my opinion.
Also in the report is an update on the stock buyback program currently underway. According to the report, there were substantial buy backs in the last quarter but there remain enough liquidity in the program to buy back about another 2% of the outstanding shares.
Simply put, the company continues to fire on all cylinders. I remain strongly optimistic about Armanino.
Disclosure: I am long Armanino. It is one of my largest individual holdings.
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