Savvy Trades and Investments

[SSKILLZ1]

NOMD

Brought NOMD At $17.64 yesterday here is what I like.

1) NOMD is very cheap for a food company, guiding for $1.82-1.89 in euros, which is equal to $2.04-2.12 in USD. Hence the stock is trading at just about a 8.5X this years earnings which is absurdly low for it's industry. I believe NOMD deserves at the very least a 12x, hence I feel FV is around $25, which possibly could setup a 45% or so return counting divy's over the next year.

2) NOMD Is a solid capital return to stockholders. The dividend yield where I brought was slightly over 3.85% which is a decent yield to get paid to wait on. In addition NOMD Continues to buyback shares which is accretive as it reduced the share count over time.

Conclusion: I think NOMD is generally a decent growth story in a industry where most of them lack growth. Offer a good dividend yield, a stock buyback, and a too cheap valuation on NOMD. All is just my opinion, and I could always be wrong though.