Amnf ... Reports record quarter after record quarter, increases dividend like clock work (3.5% yield), grows revenue and earnings at above normal rates. Still you don't pay for growth at current price.
Hi rpadebet - do you expect higher / faster growth to continue & what do you see as the moat for this business? How is it possible to do high ROA / ROE ? No competitors?
I think we had this discussion last year in the AMNF thread itself. My thoughts haven't changed much since then. I am not sure of a moat presence here, but they are small enough for the growth to continue a while longer. They are growing by selling the same stuff in other geographies. The exit scenario I still think is, once they have a decent sized business, some major buys them at a big premium ( operating expenses are still big part of AMNFs expenses which to a major buyer is all synergy).
They made 0.036 EPS last quarter. Assume no more growth and they maintain this EPS for next year, they are @ 0.144 EPS. Stock trading at $2, so PE of <14. So you are not paying for growth and you get a very decent 3.6% dividend yield (approx 50% payout ratio)
