IVFH
Thanks I joined you for a tiny position. I brought some IVFH in the 40's (.43-.44) here is what I like.
1) IVFH is a revenue growth story with solid 15% revenue growth through 6 months ended, so we are seeing solid top line growth.
2) IVFH had NI of 575k for three months ending, and 956k for 6 months ending respectively. I wouldn't use their adjusted eps numbers but I would add back the almost 132k for amortization. Hence q1 adjusted by my count is .014 in q1 and .02 in q2 for a total of .034, and I expect Number to improve from q2 levels in q3 and q4. I expect earnings to be around .05 combined the next two quarters (adjusted adding back just amortization), Hence the company will be on a .10 annualized basis based on my estimates of where the second half eps will be if I'm correct, hence trading at a PE of 4 going foward if my estimates are correct, even right now we are at about 5 times q2 annualized.
3) Stock is waaaaaaaaaaaaaaaaaaay off its highs which for me is always a plus to buy things that have not really gone up yet.
The primary thing that worry me here as every stock has its warts. 1) High customer concentration as they are heavily dependent on US foods, so that is why I plan to keep the position super tiny, but I can't see any reason why the stock shouldn't at least trade at a pe of 7-8 so even right now I would say it is worth at least .60 and I'm being overly conservative with these estimates, I could see a case where this easily doubles in 6-12 months if all goes well. Of course the high customer concentration is the thing that can come back and bite them, but I think the Risk/Reward is attractive at current levels. All is just my opinion, and I could always be wrong though.
