Innovative Food Holdings Inc (IVFH)

[Dickmo]

The follow through this morning is normal. People digest these earnings over the weekend. It also takes time for stock touts to write their articles and distribute them.

Still, the level of enthusiasm is far from off the charts. IVFH is a solid little company. It is much more solid now than it has been in nearly a decade. But this is still a low margin food broker. There is no monster upside here. This is a blocking and tackling business. A good operator can make a nice living doing this.

The big question is 'what does Sam do next?' Doing nothing over the long term is not a viable strategy. He has to do something. Once the debt is gone or on its way to being gone, Sam has to do something with his cash. He can (A) buy back stock, (B) pay a dividend or (C) make another acquisition. I believe he will do 20% of (A) and 80% of (C). He will at least stop the dilution by buying back the shares he issues each year or a little more. Then he will acquire another food broker. I think Sam has learned a lesson. He will stick to what the company does.

So now the question is timing. I would guess Q4, 2017 or Q1, 2018, assuming things go well between now and then. Could happen sooner.
Sam seeks redemption after the Fresh Diet fiasco. I have to believe he wants to put that episode in the distant past. He needs a win. He'll do what the company does well. JMO. Dickmo