I have frequently written in the past about Armanino Foods of Distinction, (AMNF), a microcap maker of Italian foods and sauces. Armanino is one of the undiscovered gems in the market. Today, those who hold the stock got the news that the company is raising its dividend by 17% to 1.4 cents per quarter. That means that the regular dividend is now providing a yield of 4.7% on the current market price of $1.19. Since Armanino frequently declares special dividends at year end, the dividend yield for 2013 may well be over 6%.
While these dividend yields are on the high side for food companies, they are just one reason why Armanino is such a favorite of mine. The company has been growing earnings and revenues at a high rate for years. The stock price has responded by growing rapidly as well. Indeed, the stock price is up over 30% since the first of the year. Even with this rise, the price/earnings multiple for the stock is much lower than other food companies that are growing at a much slower pace. Right now, the stock is selling at about eleven times expected earnings, a very low level.
On top of all this, Armanino would make a perfect acquisition for a number of larger food companies. It is one of the few acquisitions that could be accretive from day one even if purchased at a substantial premium to the current market price.
This stock is truly a strong buy!
DISCLOSURE: I remain long Armanino.
While these dividend yields are on the high side for food companies, they are just one reason why Armanino is such a favorite of mine. The company has been growing earnings and revenues at a high rate for years. The stock price has responded by growing rapidly as well. Indeed, the stock price is up over 30% since the first of the year. Even with this rise, the price/earnings multiple for the stock is much lower than other food companies that are growing at a much slower pace. Right now, the stock is selling at about eleven times expected earnings, a very low level.
On top of all this, Armanino would make a perfect acquisition for a number of larger food companies. It is one of the few acquisitions that could be accretive from day one even if purchased at a substantial premium to the current market price.
This stock is truly a strong buy!
DISCLOSURE: I remain long Armanino.
4 comments:
I also have been long AMNF since May 2010. What a stellar performer!
I also have been long AMNF since May 2010. What a stellar performer!
They recently got a nice write-up from Bretton Funds in their 1st Quarter shareholder letter. Nice to see a mutual fund take interest, slowly the word is getting out. Long since 1988 (25 years!)
They recently got a nice write-up from Bretton Funds in their 1st Quarter shareholder letter. Nice to see a mutual fund take interest, slowly the word is getting out. Long since 1988 (25 years!)
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