|Written by GSCR Staff|
|Wednesday, 20 August 2014 05:52|
Back to school season is here. On top of that there is still time to get on board for the seasonal accumulation here as well.
One of our November 2013 30-30 picks may be the one for you to pounce on for a bounce this fall. Inventure Foods, Inc. (NASDAQ – SNAK - $11.83) is just above the 1% mark in the green since then. The stock reached $14.50 in early April this year before the bottom fell out over the next three months with a precipitous 20% drop to $10.52 in early July. The back to school jump is now in process.
As a refresher here is quick overview of Inventure Foods. The Company has healthy/natural snack food products include that include Rader Farms frozen berries, Boulder Canyon Natural Foods brand kettle cooked potato chips, Jamba branded blend-and- serve smoothie kits under license from Jamba Juice Company, and private label frozen fruit and healthy/natural snacks. The Company's indulgent specialty snack food products comprise T.G.I. Friday’s brand snacks; Nathan’s Famous brand snack products, Vidalia brand snack products, Poore Brothers kettle cooked potato chips, Bob’s Texas Style kettle cooked chips, and Tato Skins brand potato snacks. It also manufactures and distributes private label and co-branded fruit and snack chip products for grocery chains and natural stores. The Company sells its products directly and through a network of brokers and distributors to grocery, natural, mass, drug, club, value, vending, food service, and convenience stores in the United States and internationally.
The forward P/E is nearly half the trailing P/E at 17 versus 32 for SNAK. Moreover the 5-year PEG is just over 1 at 1.37 which is a positive for the longer term investors. For the traders, SNAK is now above the 20 and 50 day moving average. With a current ratio of 2, which indicates a 2 to 1 ratio of current assets including cash to current liabilities, the Company remains in a solid position to maintain and further innovate in its product line and improve and grow its marketing channels.
We think SNAK gets back above $15 this year.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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