>>> J & J Snack Foods Acquires PHILLY SWIRL
PENNSAUKEN, N.J., May 1, 2014 (GLOBE NEWSWIRE) -- J & J Snack Foods Corp. (JJSF) announced today that it has acquired the stock of Philly's Famous Water Ice, Inc. (PHILLY SWIRL). PHILLY SWIRL, located in Tampa, FL, produces frozen novelty products sold to both retail and food service locations throughout the United States and to Canada. Philly Swirl's distinctive product offerings ( www.phillyswirl.com ) include fun & unique kid friendly items, as well as better for you products. The Company said that revenues of PHILLY SWIRL are approximately $25 million annually, but did not disclose the purchase price.
Gerald B. Shreiber, J & J's President and Chief Executive Officer, commented, "SWIRL has a unique product line and complements the frozen novelty section with popular niche products."
J&J Snack Foods Corp. is a leader and innovator in the snack food industry, providing nutritional and affordable branded niche snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, BAVARIAN BAKERY and other soft pretzels, ICEE and SLUSH PUPPIE frozen beverages, LUIGI'S, MINUTE MAID* frozen juice bars and ices, WHOLE FRUIT sorbet and frozen fruit bars, MARY B'S biscuits and dumplings, DADDY RAY'S fig and fruit bars, CALIFORNIA CHURROS and TIO PEPE'S churros, PATIO Burritos and other handheld sandwiches, THE FUNNEL CAKE FACTORY funnel cakes, and several cookie brands within COUNTRY HOME BAKERS. For more information, please visit us at www.jjsnack.com.
Church & Dwight -- >>> 3 Reasons to Buy Church & Dwight
By Philip Saglimbeni
April 9, 2014
Any investor who took the time to read the latest conference call from Church & Dwight (NYSE: CHD ) had to come away at least a little excited. The enthusiasm from management, particularly Executive Chairman and CEO James Craigie, was great to witness and should inspire confidence in investors regarding the future of the relatively small company.
Of particular interest were CEO Craigie's top reasons to be excited for the future of Church & Dwight. Together, the reasons form a compelling argument for investing in the small consumer goods company over larger competitors like Procter & Gamble (NYSE: PG ) .
Craigie's top three
In the company's most recent investor's presentation, CEO Craigie laid out 10 reasons Church & Dwight can continue to deliver superior total shareholder returns compared to competitors going forward. The first three are especially worth considering since they pertain to overall brand strength.
The first reason is that Church & Dwight has a recession-proof portfolio thanks to its mix of both premium and value brands. The company breaks its product mix down to 55% premium and 45% value. For instance, the company's laundry detergent brands Ultra and Xtra offer consumers a 50%-65% discount to Procter & Gamble's Tide brand. Church & Dwight's fabric softeners are also marked 50% lower than Procter & Gamble's Bounce brand. So, in tough economic times, the company's value brands will shine.
A second reason is that management at Church & Dwight is now focusing intensively on four main brands: ARM & HAMMER, OxiClean, Trojan, and the company's vitamin division, which includes Vitafusion and Lil' Critters.
Together, these brands have grown revenue over 50% since 2008 and currently represent approximately 60% of the company's total sales and profits. Therefore, they are vital to Church & Dwight's overall growth. With a more intense focus, management can better direct marketing efforts to what it refers to as its mega brands going forward.
Some of management's stated benefits of focusing on only four brands are that advertisements become more cost-effective, there's greater licensing potential, money for research and development can be used more effectively, and the company can reduce organizational costs.
A third reason to invest in Church & Dwight is that it continues to defend its brands and market share. Management has done this over the years through innovative new product introductions and increased advertisement spending.
For example, when Procter & Gamble attacked the laundry detergent market in 2009 with an aggressive marketing campaign for its Tide brand, Church & Dwight responded by strengthening its OxiClean brand. Through new product spinoffs, clever co-branding tactics and increased advertising, Church & Dwight actually grew the OxiClean brand's market share by 3% from 2009 to 2013.
Also a highlight for CEO Craigie is Church & Dwight's stellar performance for shareholders over the last decade. CEO Craigie enthusiastically explained, "Look at the total shareholder return of this company over the past 10 years, which is my tenure as Chairman and CEO. I mean, I just want to stop at this slide for the next hour. But just look at this, 394% return since July of 2004, blows away anybody else in this industry, about 6 times the S&P 500."
He then highlighted the company's impressive dividend achievements. The company has raised its dividend 10 times in the last 10 years at an average annual dividend growth rate of 30%. This compares favorably to Procter & Gamble, which has raised its dividend 10 times in the last decade as well, but at a substantially lower annual growth rate of 10.6%.
Growth projections for Church & Dwight also beat out those of larger competitor PG. The company is projected to grow revenue 3.2% and EPS 9% in 2014 compared to PG's respective 1.1% and 4.2%.
It is not often that investors are presented with such enthusiasm from company management. However, Church & Dwight's CEO Jim Craigie has a lot to be excited about, as his company is currently firing on all cylinders and gaining ground on its larger competitors.
With a tighter focus on its four mega brands going forward, management at Church & Dwight appears set to increase the company's overall brand awareness among consumers and continue to outperform peers in the process.
Stericycle -- >>> 2 Growth Stocks for Your 2013 Roth IRA Contribution
By Nicole Seghetti
March 19, 2014
With less than one month to go before the tax-filing deadline, it's time to fund your Roth IRA. Here are two attractive stocks worth considering for your Roth contribution dollars. Both boast exciting growth prospects and competitive positions in their respective industries.
Snap-on (NYSE: SNA ) Primarily known for its Snap-on tools and focus on automotive repair, the Wisconsin-based company has broadened its focus to reach other industries, including aviation, agriculture, and mining. This has allowed Snap-on to diversify its revenue stream and fuel growth, which should drive earnings in the future. Beyond tools, Snap-on also sells diagnostic equipment and software, which are extremely profitable compared with Snap-on's other business segments. With an attractive margin profile and the potential for growth, this segment should help drive stronger sales and earnings growth. Snap-on is also expanding into emerging markets, specifically China and India. Only 10% of Snap-on's 2013 sales were derived from Asia, signifying a lot of growth potential.
Over the past three years, Snap-on's revenue has averaged annual growth of 5%, while earnings have averaged 22% growth. The company's recent P/E ratio has been just under 19, while the industry average P/E is close to 23. Snap-on's forward-looking P/E, based on next year's earnings, is less than 15. Snap-on's future growth prospects and enticing current valuation makes it a great candidate for your 2013 Roth IRA contribution dollars.
Stericycle (NASDAQ: SRCL ) Stericycle collects and treats regulated medical waste such as syringes and gloves. The company also provides training on medical-waste handling, manages patient communications, and offers a service to manage customer returns and recalls of pharmaceuticals or medical devices. The Illinois-based company has established itself as the market leader in medical-waste collection and disposal through its extensive collection network. The disposal of medical waste is heavily regulated. As such, hospitals and medical clinics continually outsource the handling of medical waste to experts. New regulations provide additional avenues of growth for Stericycle. The rising and aging U.S. population should also drive an increase in medical procedures and prescribed medications, which will increase the quantity of medical waste. Stericycle is well-positioned to benefit from this trend.
Over the past three years, Stericycle's revenue has averaged annual growth of 14% and earnings have also averaged 14%. The company's recent P/E ratio has been around 32, while the industry average P/E is about 46. Meanwhile, Stericycle's forward-looking P/E is 24. Be sure to consider Stericycle for your 2013 Roth IRA contribution.
Symrise -- >>> Symrise AG produces, markets, and sells flavors, fragrances, aroma chemicals, and cosmetic ingredients. Its Flavor & Nutrition segment provides flavors and functional ingredients in liquid, powder, granulated, or paste forms for use in confectionery, bakery, cereal, ice cream, and dairy products; culinary and snack food products; non-alcoholic, alcoholic, and dry beverages; food supplements, health care products, and specialties. This segment offers its products under the naturally citrus!, BrewTopia, and simply vanilla brands. The company?s Scent & Care segment provides fragrances, including perfume oils used in perfumes, hair-care products, washing lotions, skin creams, deodorants, and washing products; and a range of mint aromas and intermediate products for toothpaste, oral care products, and chewing gums. This segment also offers life essentials that are used in skin care and hair care products, suntan lotions, aftershave balsams, shower gels, washing lotions, anti-dandruff shampoos, and deodorants; and aroma molecules in liquid or crystalline forms for use in various applications. In addition, Symrise AG provides biofunctional and bioactive ingredients and substances to the health and personal care sectors. The company serves companies in the perfume, cosmetics, and food industries, as well as the manufacturers of household products in Europe, Africa, the Middle East, North America, the Asia Pacific, and Latin America. Symrise AG was founded in 1874 and is headquartered in Holzminden, Germany. <<<
Sensient -- >>> Flavours firm Wild to go on sale for 1.5 bln euros-sources
By Arno Schuetze
FRANKFURT, March 7 (Reuters) - German drink and food flavours maker Wild is putting itself up for sale in a deal that could value the company at 1.5 billion euros ($2.1 billion), three people familiar with the matter said on Monday.
Citigroup Inc, which is organising the transaction, will send out information packages to a small group of pre-selected bidders later this month, the people said, adding first bids are expected to be due by the end of April.
Simultaneously, a potential stock market listing is being prepared, the sources said.
Hans-Peter Wild, son of founder Rudolf Wild, owns 65 percent of Wild Flavors, while buyout group KKR owns 35 percent. Wild is also the owner of a separate company which makes the Capri-Sun drink.
Potential buyers are likely to value the company at between 1.4 billion euros and 1.7 billion, or 10 to 12 times Wild Flavor's expected 2014 core earnings (EBITDA) of 140 million euros, the sources said.
That would be in line with the valuation of competitors which trade at about 11 times expected operating earnings, according to Thomson Reuters data.
Peers such as Givaudan, Symrise, IFF , Sensient Flavors, Ingredion and Ajinomoto are likely to show interest in Wild, although some may face antitrust issues as Wild is the world's sixth-biggest flavour provider.
Separately, private equity groups such as Advent, EQT, Cinven, BC Partners, CD&R and Permira are also likely to be invited to the auction, the sources said.
"One possible outcome, which should not be ruled out, is that the auction is mainly a price-finding exercise and may result in KKR buying out Wild or vice versa," one banker working on the transaction said.
Bankers have also started preparing debt packages of about 1 billion euros, or 7.5 times Wild's operating earnings, another source said.
Any buyer of Wild will get access to a large variety of flavours, extracts, seasonings and colours derived from natural sources, which are crucial components of processed foods and beverages. Customers have of late been showing increasing appetite for foods comprising only natural components.
Wild, headquartered in Zug, Switzerland, was founded in 1931 in Heidelberg, Germany, as a producer of ingredients for non-alcoholic beverages. About 20 years later it started selling Libella, Germany's first carbonated juice drink based on natural ingredients only.
Wild Flavors posted 2013 sales of almost 900 million euros.
Since KKR's investment in Wild, the flavour maker has bought several companies, including Cargill's juice blends business, mint oil maker A.M. Todd and natural extracts maker Alfrebro.
KKR, Givaudan, Symrise, Ajinomoto, BC Partners, EQT, Advent and CD&R declined to comment, while Wild, IFF, Sensient Flavors, Ingredion and Cinven were not immediately available for comment.
RigNet -- >>> 3 Undervalued Stocks With Significant Upside Potential
By Anjum Khan
September 26, 2013
RigNet (NASDAQ: RNET ) is an oil field communication provider; the company provides upstream oil and gas industry (both offshore and onshore) with network-based services. RigNet, a small company with a market cap of $566 million and good growth prospects, started its business in 2001 and had an IPO in 2010.
The company's revenue growth has been robust, with a compound annual growth rate of 19% from fiscal 2009 to 2012. Adjusted EBITDA has also increased from $29 million in 2009 to $44 million in 2012, indicating increased operating-level efficiency and profits. Superior operating efficiency is also indicated by an improvement in operating and free cash flow.
The company is currently trading at a P/E of almost 40, with estimated growth of 43% in 2013. A PEG of 0.8 does suggest undervaluation and thus potential upside. RigNet's offshore market share has risen from 7% in 2005 to 30.5% in 2012, and this is indicative that the company has done well with its products and services in a competitive market.
A similar trend can be seen in the company's onshore market, where its market share is 16.5% for the United States. The company is in plans to expand its onshore and offshore market share by penetrating the market of newly built rigs, while at the same time acquiring existing rigs from competitors .
The graph below represents the global fixed and floating rigs that are scheduled to be delivered. With the delivery of these new rigs, the potential market size of the company's business will increase, translating to higher growth.
Sigma Aldrich -- >>> Sigma-Aldrich Corporation Declares Increased Quarterly Dividend
February 11, 2014
ST. LOUIS, Feb. 11, 2014 /PRNewswire/ -- Sigma-Aldrich Corporation (SIAL), a leading Life Science and High Technology company (the "Company"), announced an increase of 7% in its quarterly cash dividend to $0.23 per share. The increased dividend was approved by the Company's Board of Directors on February 11, 2014 and is payable on March 14, 2014 to shareholders of record at the close of business on February 28, 2014.
About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High Technology company whose biochemical and organic chemical products, kits and services are used in scientific research, including genomic and proteomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical, diagnostics and high technology manufacturing. Sigma-Aldrich customers include more than one million scientists and technologists in life science companies, university and government institutions, hospitals and a wide range of industrial companies. The Company operates in 37 countries and has approximately 9,000 employees whose objective is to provide excellent service worldwide. Sigma-Aldrich is committed to accelerating customer success through innovation and leadership in Life Science, High Technology and Service. For more information about Sigma-Aldrich, please visit its website at www.sigma-aldrich.com.
NewMarket Corp -- >>> Don't Miss Out On NewMarket Corp.
Dec. 26, 2013
NewMarket Corp. (NEU) is a holding company involved in formulating and manufacturing a variety of petroleum additives. In addition to additives, lubricants and similar products, NEU diversified its operations to include real estate development through its NewMarket Development Corporation.
Real Estate Development News
As of this writing, NEU's real estate development is limited to Foundry Park I LLC in Richmond, Va. In FY 2012, NewMarket used proceeds from a debt restructuring scheme to pay off its Foundry Park property mortgage. Then, in July 2013, NewMarket's real estate operations succeeded in a profitable property sale.
The takeaway is that NewMarket's foray into real estate development hints at smart management that can manage debt and construction costs/risks without compromising other critical operations and financial stability. If NEU continues its real estate development operations in a manner similar to its Foundry Park I project, such moves would bode very well for the company and its shareholders.
The core of NewMarket's business is petroleum additives and petroleum-derived lubricants. Afton Chemical is a NewMarket subsidiary that invests in R&D and manufacture of additives for the following:
•Metalworking and hydraulic industrial use
•Fuels, including heating oils
•Gear oil and related driveline additives
•Engine oil for personal, heavy-duty and motorcycle engines
Afton seems optimistic about future demand for its additives. In 2012, the company announced a substantial, long-term investment in a Singapore additives manufacturing facility. This makes intuitive sense since the Asian region is very likely to see consistent economic growth and with it, more demand for vehicles and associated oils and fuels -- therefore, additives.