Annie's (NYSE:BNNY)

CAPS Rating: 3 out of 5


Player Avatar adamlevy (71.74) Submitted: 11/11/2012 1:15:04 PM : Underperform Start Price: $38.03 BNNY Score: +6.10

Insider sales continue to pile up. The company appears way overvalued compared to its closest comparables. Profit margins are going down as sales go up. The company can't compete with competition in cereals or dressings and condiments. Sales are likely only going up because of new products and new natural and organic stores opening. The product is marketed as healthy, but isn't really any healthier than the competition. Overall, I don't like the balance sheet, the income statement, or the product. The last one is a bit more subjective than the first two, but I fear I'm not alone in that opinion.

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