I love nothing more than investing in simple businesses. One’s that are easy to understand. John B. Sanfilippo & Son, Inc. engages in processing and marketing tree nuts and peanuts in the United States. The company provides raw and processed nuts, including peanuts, almonds, Brazil nuts, pecans, pistachios, filberts, cashews, English walnuts, black walnuts, pine nuts, and macadamia nuts.
Why is this company an interesting investment prospect. First the company sells below book value which is simply the tangible value of all there assets after all liabilities have been subtracted. This gives me a margin of safety because I’m buying assets at a fair price.
Second, the company is generating volumes of free cash flow. After all expenses are paid including capital expenditures depreciation is added back to net income because depreciation is not an actually cash expense but rather an accounting mark.
Here’s a solid investment in a cash flow positive company at a very reasonable price. The ability for the company to use the free cash flow from operations to pay down debt will make shareholder equity continue to compound at a very reasonable rate.
Check out the website and request a free annual report:http://www.fishernuts.com/
Stock Symbol: JBSS