SNAK was recommended by Small Cap Investor PRO at $4.08 in Investment Digestissue 706, dated November 2, 2011. SNAK closed Friday at $6.43.
“Let’s go ahead and close out our position in Inventure Foods, Inc. (SNAK) at $6.51 and lock in the 63.2% gain. I still like this little company, especially after it posted a great quarter, but shares have rallied hard this spring and the stock is trading near historical highs. From a fundamental perspective they are getting a little inflated on a trailing P/E basis. While forward guidance looks good, the company is earning less than $0.10 per quarter so any sort of blip could ding earnings in the next quarter and potentially drive the stock down.
“Bottom line here is we can lock in the gain now, and beat the Russell 2000 index by 44.4% over our SNAK holding period. That’s pretty darn good. I’ll keep an eye on the stock and consider adding it back if a deal comes along.
“Action to take: Sell Inventure Foods (SNAK) around $6.51.”
- Tyler Laundon, Small Cap Investor PRO, June 22, 2012