Author Topic: AMNF - Armanino Foods Distinction  (Read 23957 times)

60°North Investments

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Re: AMNF - Armanino Foods Distinction
« Reply #40 on: April 23, 2016, 05:15:43 AM »
They'll be investing in capacity expansion, for which funding should be decided in Q2, construction beginning in Q3 and project finished in Q4 or Q1 next year. I'm interested in i) how much they'll invest (Q3 mentioned 600k$, is that it?), ii) how much more capacity will they get and iii) will margins react (if it is just new machines or something like that then operating expenses like won't move up meaningfully)?

Q1's 10% sales and EBIT growth looks good. Trading for EV/EBIT 10x, p/e 17x based on last year's figures. Arguably there may be some room for multiple expansion if they can maintain their outstanding +40% ROIC. Question is whether that is sustainable or vulnerable, and I don't know which one is it leaning towards.


HWWProject

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Re: AMNF - Armanino Foods Distinction
« Reply #41 on: April 23, 2016, 12:17:22 PM »
Agree watching capex will be important in the future, as it looks like they may be outgrowing current facility.  I looked at their capacity for expansion, and some 10-year data here:

http://healthywealthywiseproject.com/2016/04/security-like-best-armanino-foods/

(article also on SA) 

Margins did tick down slightly in 2015, but that's from record 2014 margins.  Gross and Net are still above 3 years ago.  The most important margin is around 2009 they began earning excellent returns on capital.  They've treated shareholders very well, buying back 9% of shares since 2010.  Currently there are no outstanding stock options.  Overall a nice little stock I think Buffett would love if he managed smaller sums (small cap with room to grow, food business -easy to understand, capable, shareholder-friendly mgmt).
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60°North Investments

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Re: AMNF - Armanino Foods Distinction
« Reply #42 on: April 23, 2016, 12:49:53 PM »
They've got 8.5m$ worth of PP&E at cost, which is depreciated into today's 1.7m$. Whatever their capacity expansion will end up costing it is interesting how they're able to get as much sales out of their depreciated assets as they are getting.

Personal opinion and offtopic, but I would try to move away from the thinking "Buffett would love this company". It may work as a sales pitch but I think there's danger that you destroy your critical thinking capabilities. Other than being a sales pitch I honestly don't know why should anyone care whether some stock would be liked by Buffett.

Anyway, an interesting company that I'll keep an eye on and see how things turn out. Currently not sure if it offers enough of return potential compared to potential risks.

notorious546

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Re: AMNF - Armanino Foods Distinction
« Reply #43 on: May 12, 2016, 02:12:57 PM »
this company showed up in a screen i ran recently. looking forward to following the company and discussing with people.

fareastwarriors

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Re: AMNF - Armanino Foods Distinction
« Reply #44 on: May 12, 2016, 02:28:34 PM »
this company showed up in a screen i ran recently. looking forward to following the company and discussing with people.

What kind of screening were you doing?

notorious546

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Re: AMNF - Armanino Foods Distinction
« Reply #45 on: May 12, 2016, 07:33:41 PM »
this company showed up in a screen i ran recently. looking forward to following the company and discussing with people.

What kind of screening were you doing?

trades on otc, roic >10% past 10 years and earnings cagr >7% last 10 years.

matjone

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Re: AMNF - Armanino Foods Distinction
« Reply #46 on: May 13, 2016, 06:15:57 AM »
Mind sharing which screener?
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notorious546

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Re: AMNF - Armanino Foods Distinction
« Reply #47 on: May 13, 2016, 06:44:07 AM »
factset

notorious546

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Re: AMNF - Armanino Foods Distinction
« Reply #48 on: June 13, 2016, 06:38:46 AM »
Armanino Foods of Distinction, Inc. (OTC Pink: AMNF) today declared an increased regular quarterly dividend of $0.020 per share. This new level is an increase of 5.2% from the prior regular quarterly dividend amount of $0.019. The dividend will be payable on or about July 29, 2016 to shareholders of record July 1, 2016. This dividend will be the Company’s 64th consecutive regular quarterly dividend. In addition, the Company has had ten special dividends.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160609006281/en/


Foreign Tuffett

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Re: AMNF - Armanino Foods Distinction
« Reply #49 on: July 06, 2016, 11:40:28 AM »
Like the company but the one thing I can't get comfortable with is it would seem the company uses an accountant where AMNF would appear to basically be their only account. The firm's address looks to be a residential home. Any one have any insight, thought on this?

I just wanted to echo the quoted comment above as I don't think anyone addressed it and Armanino is still being audited by Gregory and Associates LLC, the same 1 employee firm. 

It looks like the PCAOB took issues with the quality of Gregory's audit in 2011.
https://pcaobus.org/Inspections/Reports/Documents/2011_Gregory_Associates_LLC.pdf

Why would a California company work with a Salt Lake City based accounting firm that apparently has no other clients?