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Initiating position in Small Cap Growth - LNDC



February 14, 2013 – Comments (0) | RELATED TICKERS: LNDC

LNDC is a very interesting company in my perspective…they recently reported revenue increases of 41% YoY and Net Income increased 167% YoY!

The company operates primarily in 4 divisions display by Revenue (Food Products 65.4%, Food Export 22.5%, Biomaterials 10.8% and Technology Licensing 1.3%).  The company is currently trading at 15.6 earnings which has been contracting over the last two years from a of around 44 and average of roughly 28 over the last two years, all while the company is accelerating growth!

The company has matched or surpassed earnings estimates for last 10 quarters!  I strongly believe this trend will continue due to the fact they are growing their core business faster than the industry growth.

However, with any business there are always risks associated, unfavorable weather conditions affecting crops, the “true” impact of the termination of the licensing agree with Chiquita for the BreathWay packaging technology.

Things to look forward to, per recent earnings release:

Our goals are as follows: (1) continue integrating GreenLine into Apio's operations, (2) grow Apio's business while maintaining or improving Apio's margins, (3) grow Lifecore's business by launching new products and obtaining new customers, and (4) invest in R&D efforts for developing new technology-based applications.


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