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Yeah, OK. I almost believe that. I'm sure someone believes that a person who has all day to post here is busy making money. Personally, I don't know who that person may be, but I'm sure someone believes it.
Next time you post here, just know that your point of view has been proven wrong several times before. And no, I have never been fired. Came close a few times, but never been fired. So chalk up another error.
Go back to toiling. It sounds so industrious.
Someone here is utterly clueless. And no, I do not wish failure for this company. Quite the opposite. I see massive unexploited potential. I see a company run by people who act as if they own this company. I see an organization that should be doing much better than it presently is.
Funny how you are the last to know. I have had several other people figure out who I am, why I know what I know, and why I have a perspective on this business that few others can match. It's rather surprising that there are still people who don't know. I would have thought it was common knowledge. Pretty sad, Stocks.
Joe??? Seriously? Joe has no right to call anyone out. Look how he screwed up this company before Sam had to come in and save it.
Nope, try again. Try thinking this time.
I am very surprised you haven't figured out who I am. You must be the last person on the board to have figured it out. Sad. If you knew, then all your questions would be answered.
Dickmo had a very good reason for not posting for a while. And you would be advised to focus on the management team of this company. I do not run this company. Sam does. The one you need to watch is him, not me.
Go back and look at the problems the company had back then. Simply awful management. They even bought an interest in a pasta factory that never bothered to pay them back. It was a joke. That's where all the debt came from.
If you aren't angry, it's because you aren't paying attention.
As for $2/share again, don't hold your breath. IVFH will get there. Someday. But only if management doesn't make another huge mistake.
Maybe you will. And when it ran to $2, you will note that it was grossly inflated. Since there doesn't appear to be a functioning Board of Directors, the only corrective measures that management hears are posted on this chat board. Stocks, I've been right about IVFH so long it's almost getting boring. Almost.
If and when management crushes your carefully considered investment for a second time, let's see how forgiving you are the next time. I happen to believe that when someone is that well compensated, they don't get a mulligan. Little screw ups are allowed. Ones that nearly destroy an organization are not. That's the price of being well compensated.
Old disgruntled shareholders are disgruntled because they have knowledge of history.
"those who fail to learn the lessons of history are doomed to repeat them"
and
“There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again.”
Words to live by.
"your implication is that he's perpetually irrational and greedy in his decision-making." Never said that. Don't put words in my mouth that aren't there. I believe in the case of Fresh Diet he was irrational and greedy in decision making.
And I repeat that if the company's considered decision was to buy a money losing company in a business they knew nothing about to save themselves from a possible USF loss, then ridicule is the order of the day. I refuse to believe the company put much, if any, thought into the decision to buy FD. They saw a bright shiny object at a cheap price and they gobbled it up with virtually no plan, no understanding, and no analysis. The USF story was worked up later to help justify a very poor decision.
Let's agree to disagree. Your evaluation and mine of quality management are quite different.
They are not personal attacks. They are professional attacks. Sam has many talents that have greatly benefited the company. He also came within a few months of bankrupting it due solely to his own decisions. Quite professional - strictly based on his record and treatment of his public shareholders. Sam gets paid very well for his work. You, me and everyone else should be a lot more demanding than we are.
As for the justification for the FD acquisition, I sincerely hope that your reasoning is way off the mark. If it is correct, then we have even more reason to hammer management. IVFH runs the risk of losing its largest account, so they diversify into a company in obvious need of a major turn around in a business they know nothing about. And management brings in a guy whose track record in the same business was, let's call it, uneven, to be charitable.
Let's assume they buy FD and then they lose the major account due to a merger (why I don't understand, but it's your theory). Instead of solving one problem and bleeding from one gaping hole, now they are dealing with two problems and two cash sinks at the same time. That's some fine strategy.
No. I think Sam saw a company selling for 1x sales and he got all tingly thinking he could steal it below market. Hint: When you see a horse going off at 7:2 that should be 12-1, there's a reason. And when you see a company like IVFH selling at 6x earnings for quarter after quarter, there's a reason for that too. Don't over think this. The author tells you very early in his piece that IVFH is underpriced and why.
Close but not quite there yet. It is not that "unless sam starts to satisfy the emotional needs of prospective microcap traders, that'll increase share price?" It is if Sam does not increase his professionalism, the company will continue to find a low price ceiling.
You now have a company selling for 6x EBITDA (IVFH does not pay taxes and won't for many years thanks to the FD debacle.) I believe it should sell for 9 to 12x EBITDA. I'll bet the author would go even a bit higher. But it doesn't for several reasons that I have previously stated. One of those reasons is the fear that Sam will purchase another boat anchor. No one knows whether Sam understands what he did wrong. You assume he does. I do not make that assumption. Apparently, the stock market agrees with me.
As for unlisted stocks being just smaller versions of Amazon and US Foods and the rest of the Fortune 500, nothing could be further from reality. Most unlisted companies have more in common with the diner down the street than a Fortune 500 company. Some companies recognize this difference as an asset and exploit it. IVFH clearly does not fall in that category. Sam runs this like a privately held company. We, the shareholders, are just a nuisance to be ignored. Unfortunately, the author takes the same approach to corporate responsibility and governance, at least in part. I believe that also costs each of us in the company valuation.
The point the author is making is that unless management decides to become more professional, they will hinder the company's growth. I believe his advice to management is dead wrong concerning their complete withdrawal from contact with the scum and vermin (that is to say the retail investors who post on this chat board) on conference calls. Of course, this is Sam we are talking about. If you don't question him in a public forum, you might as well talk to your dog. Your dog will at least appreciate the attention.
Overall, the author is not being overly critical at all. If anything, he is being very charitable. Sam and the Board nearly bankrupted this company via incompetence, poor decision making, and poor oversight. Sam has never explained nor identified what could have been improved in any public statement. And I very much doubt this has happened in private either. The Board is a social club, not a real functioning board. A little honesty would be refreshing. And until then, I will continue to assume that he learned nothing from the Fresh Diet experience.
It's not easy for otherwise intelligent people to learn nothing from repeated failure. But some manage to do it. Exhibit A: The Cleveland Browns. Exhibit B: The Buffalo Bills and Exhibit C: The New York Jets. Hope is not a strategy. It would be nice to know that IVFH management and the social club are not among this group.
Another Seeking Alpha article
https://seekingalpha.com/article/4072189-innovative-food-holdings-positives-outweigh-negatives?auth_param=v5bf5:1ch916t:1326ee411d816aec1160487beb866205&uprof=45&dr=1#alt1
Overall very positive. Absolutely do not agree with his advice to Sam and company management concerning dealing with shareholders.
If you want to get the band back together, it would only be fitting to get Plant back in the saddle. I am certain he has been rehabilitated and would look forward to another shot at the captain's chair.
This time, I think we should shoot for something more ambitious. I'm thinking autonomous flying cars. We could have an unverified contract with NASA or better yet, some obscure agency funded by the US Transportation Department. This time, we need to go big. No one even looks at $24 million anymore. We need something like $618 million for project design and 400 units at $22 million each. Yeah, that's the ticket.
With some cost overruns, a few change orders, and free stock for some congressmen, we should be able to get this up to $3 billion easy! With only 30 billion shares outstanding, this should be worth 30 cents a share easy.
Does anyone remember Big Apple's phone number. We're going to need to sell some stock to raise some money. And anyone have Ruth's number? She was loyal to the end.
You had better hope that's ancient history. He's probably going to make another acquisition in the next 12 months. You had better hope that he figured out what he did wrong. Personally, I'm not convinced he has.
It's certainly worth more than it was the day they purchased Fresh Diet. Sam didn't know it then but some of us did. He had a slim chance of turning that company into a money maker. Of course, whatever he did took a bad situation and made it much worse. But in the end, a loss is a loss whether by a last minute field goal or the mercy rule late in the 3rd quarter. That disaster is gone. So yes, the company is in much better shape now. Unfortunately, Fresh Diet cost shareholders some significant dilution. It will take years to work that off.
Yes we will, my friend. Just don't hold your breath waiting for things to change. Sam's ego is wrapped up in this. This is his meal ticket. Sam's going to milk this wave until he hits the beach. Nothing is going to change. You heard it here.
OK. Then you hold on the the next 15 years while Sam bulks the company up to $55 million. Just hope he doesn't step on another land mine like Fresh Diet. You can argue with me all you want, but it doesn't change the facts. This company sells at a significant discount for all the reasons I stated. That won't change because you think it should be different.
They could. And we could populate mars with turtles, but I see no reason for that to happen either. I will bet US Foods spends more on golf outings than they buy from IVFH each year. I would be surprised if 3 people on whatever floor the corporate executives sit on could identify IVFH.
At $20 million in sales, US Foods probably buys three times more Kraft American cheese each year. They are not likely to waste their time and energy acquiring a tiny IVFH. And that is another reason why IVFH sells at a depressed price. If US Foods doesn't buy them, there is no next acquirer.
Jasonak - I can think of a few people who might want out, but they are special cases. I do not think there is a movement afoot to bail.
Your first two sentences tell you why this think isn't north of $1. You assume Sam learned something. That could be a very expensive assumption if he hasn't. No one knows because Sam doesn't talk to the likes of common folk.
As for US Foods, I agree that it is unlikely to pull the plug. But why live under a dam even if the chances of it falling are tiny? What if US Foods does what Sears was always famous for doing? What if they told Sam either you sell us 20% of the company for peanuts or we tank your company? You can assume it won't happen, but there is no guarantee.
This trades for what it trades at for multiple reasons. If US Foods pulls the plug, this company survives for maybe 4 minutes. It skips the wounded state and jumps right to death.
Then there is the issue of the next acquisition. There are plenty more failing meal plan companies to be acquired. What if Sam decides to go 'double or nothing'? To my knowledge, he has never acknowledged his compound decisions of a poor decision to acquire the business followed by inept oversight. What if he does the same thing with the next acquisition?
Finally, there's the Board of Directors who have rewarded failure with another contract and more bonuses. That's some quality oversight there too.
That's why this company sells for less than it should.
Did you see who filed the 13-D? It's the guy who wrote that article in October 2014 how Sam stole Fresh Diet and how it was going to make the company huge money.
This time, I think he is betting correctly. At 60 cents, this is a good buy. The company should be releasing Q1 results in 10 days. It's time for Sam to talk to shareholders again. It's his once a quarter conversation. The stock usually pops around filings, and then slumps in the silence that follows.
I believe Sam's next acquisition will be another food broker. The time to venture outside his comfort zone is not yet here. He needs a win to disinfect the aura created by his last acquisition.
Prediction: This stock is 80 to 90 cents by year end, maybe even a touch higher. As long as US Foods determines the company's fate, it won't go much higher. But it's worth more than 60 cents. Just my opinion - it's worth everything you paid for it.
It has gone back to sleep. $IVFH
This stock rarely trades by design, not by accident. Company management has made a conscious decision to say nothing unless it has to.
I don't think anyone is going to have a problem with a stock buy back, providing the company buys the stock at a favorable price. The acquisition is the weightier concern. Sam threw a pick 6 on his last attempt at an acquisition. I doubt very much he will go far from his base with the next one. Everyone needs an easy win after being humiliated against a tough opponent. Sam had no clue how far out of his league he was buying Fresh Diet. Company management obviously has demonstrated skills, but branding and consumer marketing are not among them.
No one needs to bash this down. A lack of IR, minimal communications with shareholders, a lack of progress in diversifying the business beyond a single customer, and continued pain from the FD debacle in the form of dilution will bring it back down.
The public buys this for 3 or four days after each quarterly report comes out. They either sell it or it doesn't trade the other 225 trading days of the year. As a long term shareholder, one would think you would expect better from your Board and your CEO.
Well done, Stocksnseeds. Yes, this is a boring stock. Yes, Sam runs this like a privately held company, But it seems to move four times a year when Sam has to talk to the little people.
Stay in touch. This company is solely a matter of valuation. When it gets back to 55 cents, I would be buying this back. Wait until the next earnings report and dump it again. Unless, of course, Sam decides to buy one of Fresh Diet's competitors because he can get a good deal on that too.
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
The last time the stock approached $2/share was in early 2015. Correct me if I am wrong, but they acquired FD in late 2014.
My beef with Sam is that he didn't do his homework. A man making his income should spend the time to learn more about what he is buying and managing. He did a world class bad job with Fresh Diet.
I agree with you that the USF relationship is unlikely to change. But one never knows. Stuff happens and the risk is always there. That's why this won't sell for 10+ times earnings until that number comes down.
Don't get too excited by that $1.50 stock quote. That happened due to the hype of Fresh Diet before people knew what a disaster it would be. I knew, but when these stock clowns put out glowing reports of millions in profits yet to come, they mislead the public. Fresh Diet was a basket case when they bought it. Then Sam did his thing and turned it from bad to worse. It still amazes me how a company can do $1.5 million a month in sales and lose just under a million a month. That takes real talent.
One can only hope he has learned from his mistake. He needs to stay away from consumer businesses. Sam is a finance guy. Finance guys should not attempt to run branded consumer businesses. As an example on a larger scale, see Sears Holdings.
Sam needs to do what he knows how to do. I see the debt coming down. I believe he'll upgrade to a better exchange. It's good for the company and Sam's ego. That's why I think he will do it.
If a 30.3% gross margin and a 9.4% operating margin is sexy to you, have at it. But I don't think it's all that attractive to investors. Admittedly, the company shows improvement year over year. But it's still a low margin business that needs significant volume to get its operating margins where they should be.
I believe Sam's next major move will be to move up to a higher exchange. If he does, I think the market will like that. Then I think you could see a price in the 75 to 90 cent range. Still a lot of negatives to keep that multiple low, but it will be better than what the company has today.
Unfortunately, that 72% of sales to one company will continue to weigh heavily on the upside potential. Sam has to find a way to diversify his sales channels. That is going to take considerable time and effort.
Sam can diversify by either cultivating new channels or by acquiring companies with other sales channels. Let's just hope his next acquisition is a bit better thought out than his last one.
Jasonak, seriously? Food brokerage is a sexy business? Compared to what? Parking lot operator?
I posted a few months ago where I thought this stock should be. And now we are there. It may go another dime or two in the coming weeks, but that should be about it. I believe you will see 55 cents again in a few months or less.
Here's why. 72% of sales are to one customer. The fully diluted shares increased 39% over last year. And the same people who bought the Fresh Diet continue to run the company. No one knows if they understand to this very day how and why they screwed up so badly. The company continues to issue at least a million shares a year to executives and others. The dilution continues. Finally, Sam maintains radio silence as if this was a privately held company. He graciously condescends to talk to the little people four times a year. Then again, Sam owns the board. It IS a privately held company. Shareholders will never see a penny in dividends.
On a more positive note, and I have to go back through the report more carefully, but it appears that the debt is largely gone. Sam had the debt holders convert to stock. Others got paid off. Look at the balance sheet and the cash flow statement. It is a lot cleaner than it was a year ago. It is a lot cleaner than it has been for a decade.
So it should take Sam another six months to load up the war chest again. Let's see what he buys this time. Hopefully, he avoids anything that sells to consumers next time. That is not this company's strong suit.
Crickets. And whatever sound they make.
No one does radio silence like Sam.
Chapter 11 filed. Thanks Tom, thanks to the entire Energy Telecom Board of Directors and last, but not least, that clown of an attorney you hired in New York.
https://www.sec.gov/Archives/edgar/data/1456455/000143774917001771/pfog20170206_8k.htm
Sarcasm? Moi? But of course.
It was clear from the start that Plant was a sneaky schnitt who had a lot more excuses than answers. But I didn't fully question the fact that he had something until I saw those financials he issued. Those looked like a 3rd grade Junior Achievement effort. It was clear then that something was way off. Still, I didn't figure him as anything more than a greedy clown stealing from his company. Finding out that the entire company was a fraud surprised even me. I'm just curious what those morons who worked there did all day since they had no products and no sales.
The fact that this stock comes back to life every few years has to be based on two things - the fact that you can buy a suitcase full for the price of a few packs of smokes and the statute of limitations on debts. Someone may yet figure out that the government probably owns the lion's share of the stock and has absolutely no idea where it is or what to do with it. If someone bought even a few million shares, they may be able to take control of the company and bring it back. I'm not a lawyer so don't assume I know what I'm talking about. Just speculating how this could possibly be worth more than used toilet paper.
But that's what it was when Plant was running it. So what's different?
'hoping they don't shoot themselves in the foot' Or the head. Again.
Next financials are issued in mid-May, 2017. Until then, unless Sam issues a press release, expect radio silence for the next 150 days.
I doubt Sam is going to acquire anything until he repairs his balance sheet. He needs to put some distance between his next venture and the debacle that was Fresh Diet.
Dickmo Prediction: This is dead money until spring is fully in bloom.
Yes, they are making enough to justify a higher price, and I believe in the long run, you will see that price. But not now.
As for now, the company is damaged goods. The Fresh Diet investment was a fiasco of incredible proportions. It nearly bankrupted the company had it not been cut adrift. The same management team that bought FD and promoted it as their growth vehicle remains firmly entrenched in power. Not one person has been fired, fined, demoted or had their salary cut. It's IVFH's version of the 2008 Banking crash.
Eventually, people forget. The company accumulates cash and the history is forgotten. I figure another 12 to 18 months. Meanwhile, buy the dips. I believe you will be rewarded. Patience, Grasshopper. This is an opportunity.
Good analysis SSKILLZ1. There are a few other wild cards that can muddy up the picture here, but I agree that the company is worth at least a 25% upgrade. At this point, it should probably sell for 55 to 70 cents.
Q3 in the restaurant business is always bad, unless your restaurant is in the Hamptons or on the Cape. Of course Q4 is the best quarter for most restaurants so there is some balance.
I expect that Sam will make no strategic moves for the next 12 months while he repairs the damage to the balance sheet done by the Fresh Diet deal. In this case, no news is good news. So I would concur with your assessment. IVFH is probably undervalued now.