Replies to post #13 on Golden Enterprises Inc. (GLDC)

[timhyma]

Good points. Thanks for sharing. I have not had a chance to digest the release yet.

[zsvq1p]

Golden Enterprises Announces Quarterly Results

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Golden Enterprises, Inc.’s (NASDAQ: GLDC) Board of Directors today declared a quarterly dividend of $.03125 per share payable October 29, 2008 to stockholders of record as of October 6, 2008.

For the thirteen weeks ended August 29, 2008, Golden Enterprises, Inc.’s net sales increased $1.5 million or 5% on net sales of $29,850,688 compared to $28,394,228 for the same period last year. Basic and diluted earnings per share were $.03 compared to $.07. Net income in the first quarter was adversely impacted by continued increases in commodity cost and a one time cost associated with the re-alignment of the eastern portion of our route system. The net effect of these costs created approximately $.07 per share negative impact on our earnings per share.

The Company has been able to increase its prices to its consumers during the first quarter of 2009 in an effort to offset the unprecedented increases in fuel cost, escalating commodity cost and a weak dollar. Additionally, the re-alignment of the eastern portion of our route sales system will reduce costs associated with selling and delivery. The benefits of these changes will help move the Company forward with improved profit margins.

The following is a summary of sales and income information for the thirteen weeks ended August 29, 2008 and August 31, 2007.

THIRTEEN WEEKS ENDED
August 29, August 31,
2008 2007
Net sales $ 29,850,688 $ 28,394,228

Income before income taxes $ 580,823 $ 1,335,037
Income taxes 226,357 492,664

Net income $ 354,466 $ 842,373

Basic and diluted earnings per share $ .03 $ .07

Basic weighted shares outstanding 11,783,385 11,835,288

Diluted weighted shares outstanding 11,783,385 11,835,288


This News Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those forward-looking statements. Factors that may cause actual results to differ materially include price competition, industry consolidation, raw material costs and effectiveness of sales and marketing activities, as described in the Company’s filings with the Securities and Exchange Commission.

CONTACT:
Golden Enterprises, Inc.
Patty Townsend, 205-458-7132

[zsvq1p]

interesting Luke "...such generosity may end.." Humm? Why would you think that?
It appears to me they have a very good CFO and they know how to manage cash very well. History has proven that... Should I expand?

Just from the PR... "...one time cost... created approximately $.07 per share negative impact..." The message says they would have made $1.1 million... or $.10/share... and historically we trade above $2.50 at that level of net income...



I say history will repeat so will continue to flip a few and add to base here...

The thing I don't like about this one is trading liquidity.

[zsvq1p]

It seems to me when you own a stock like this one...

You must accept that the ones with power have total control. You just won't get information that may or may not be important.

Do I believe they could cut expenses and turn 10% NI or so? Yes
Do I believe they could explain stuff in greater detail? Yes
Do I believe they are top chip food company? No
Do I believe they are ultra conservative? Yes
Do I believe they look out for themselves first and shareholders second? Yes

Am I happy with the return from my flipping, accumulation and divy? YES
Why? I'm up significantly here and believe in this down market this is to be expected. From a timing point, I got pretty lucky here...

Thanks to Tim

I can certainly understand any bitterness if someone owned in '07 and held. That said, It's tough for me too.. to stay with a loser and continue to work it.. add more with confidence with expectations of making it back and more.

You opinion is very valued by me Luke and thanks for a very good post that provokes good thought!