John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS)

tutaemeia (88.41) Submitted: 12/26/2012 4:45:27 PM : Start Price: $18.06 JBSS Score: -6.94

Iam not nuts and I love peanuts ;)

GirlsUnder30 (68.23) Submitted: 12/18/2012 7:59:35 AM : Start Price: $18.52 JBSS Score: -6.99

This is my only really nutty play.

ikkyu2 (99.52) Submitted: 5/15/2011 3:36:37 PM : Start Price: $9.03 JBSS Score: +95.57

Deez nuts.

GrowthnValue (< 20) Submitted: 5/15/2011 2:16:52 PM : Start Price: $9.03 JBSS Score: +95.57

Long watchlist (I know there is a watchlist function on CAPS, but I don't seem to actually watch the stocks on that list)

tiintellect (96.44) Submitted: 4/18/2011 5:44:52 PM : Start Price: $11.01 JBSS Score: +53.41

They grow and shell their own pecans... one of the fasted growing food items of the Chinese palate... money on the plate...

Wh1sp (99.99) Submitted: 2/18/2010 3:12:00 PM : Start Price: $15.25 JBSS Score: -19.12

happened across them, glad I did. Solid little company. Given Q1 is usually their worst, if they report positive EPS Q1 that would make me incredibly bullish.

GoldorTin (80.94) Submitted: 2/2/2010 6:54:51 PM : Start Price: $14.96 JBSS Score: -18.10

No peanuts here when this company takes off.

colmust2 (75.29) Submitted: 9/13/2006 2:04:26 PM : Start Price: $9.48 JBSS Score: +75.09

JBSS is trading at 0.6x tangible book value and 0.2x sales. Their recent fiscal year has been horrendous, due to nut costs that have been high but are now coming down. Unfortunately, the company only buys nuts once per year, so they are still working off their high cost inventory, particularly in almonds, which don't run out until the end of October 2006. Going forward from here we will see steady increases in earnings.

JBSS is a cyclical company, but not cyclical with the economy. The company's cycle is based on commodity prices for nuts. And right now the company is emerging from a cyclical trough, and at the same time the company's valuation is at a trough (I believe the company is trading at less than 5x normalized earnings).

If the company can get back to their historical average gross margin of 17%, they should be able to earn $2+ per share, which I expect to happen by FY 08 (year ending in June). By FY 09, due to cost savings from the plant rationalization project, $2.50 per share should be possible.

Slap a 10x forward multiple on those earnings and you are looking at more than a double from current prices.

Risk reward is very favorable - on the downside you are trading already at a discount to tangible book value, so it's hard to see the stock go down much further from here.