$6.18
0.06 (+0.98%)
Landec Corp (LNDC)
CAPS Rating:
The Company and its subsidiaries, design, develop, manufacture and sell temperature-activated and other specialty polymer products for a variety of food products, agricultural products and licensed partner applications.
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As a purchaser for a large restaurant, I understand the value of shelf life for fresh foods. However, most produce, seafood, poultry, beef, etc. purveyors deliver 6-7 days a week.
Organic food outlets are the niche for Landec. It will take awhile for non-organic outlets to join in because of the cost difference for the packaging.
As a long term investment I believe Landec products will catch on. For the near future (1-2 years) the stock cannot outperform the S & P.
Look for the price of the packaging to come down, then pounce.
Many states are adopting federal guidelines for food safety standards, and one of those is a maximum 24-hour hold on prepared food. Georgia implements this on December 1st and it's really giving the restaurants fits.
That rule would limit the usefulness of any Landec product on the restaurant side. Their only value is from sales to vendors/distributors or at grocery stores.
If I can ask, who do you buy for? I was a Steak n Shake purchasing agent for years, so I can sympathize with your position.