Innovative Food Holdings Inc (IVFH)

[Eldan]

I've been following IVFH closely for about 6 months, and was very pleasantly surprised to find such a quality discussion here. Thought I'd introduce myself and add my two cents:

Basically I agree with Dickmo that the main problem here is the governance problems preventing a regular market listing. I looked at 166 NASDAQ stocks with revenues under $50M and positive earnings; only 2 have a PE under 6. Getting listed should at least be talked about as long-term goal by management.

IVFH looked super cheap in 2017 because gross margins were about 2% above average and cash operating expenses were about 2% below average. With the acquisition of iGourmet in Q1 and Q2 gross margins are below average and cash operating expenses are above average; it's a serious hit to EBITDA.

Nevertheless, it looks to me like IVFH will have about $0.09 EPS over the next 4 quarters. Paying off the $1.5M note will reduce FCFE to around $2.4M in 2018/19, then about $4M/yr going forward before any growth. There's little doubt in my mind that this is a very undervalued stock. Getting other investors to touch it or even see it is the problem.