Landec Corp (LNDC)

Companies are great investments for many reasons. The Potash's of the world are purchased on increased demand pushing prices through the roof. Honeywell is purchased because of its stability of earnings and large presence to a growing aerospace market. Diamond Offshore is interesting because of its huge shareholder returns with respect to dividends. Today's environment does not lend well to what most investors want and that is a home run stock. The kind of stock that not only do you have a ten bagger when it is all done, but you have bragging rights for all eternity that you made the pick that everyone missed. These companies are very hard to find, as many are bought with that type of growth and other just plain fail. The key to finding a ten bagger is having a technology that revolutionizes an industry. It generally takes time, but the Microsoft's of the world were not built in a day either, and most of the big winners here were... More Companies are great investments for many reasons. The Potash's of the world are purchased on increased demand pushing prices through the roof. Honeywell is purchased because of its stability of earnings and large presence to a growing aerospace market. Diamond Offshore is interesting because of its huge shareholder returns with respect to dividends. Today's environment does not lend well to what most investors want and that is a home run stock. The kind of stock that not only do you have a ten bagger when it is all done, but you have bragging rights for all eternity that you made the pick that everyone missed. These companies are very hard to find, as many are bought with that type of growth and other just plain fail. The key to finding a ten bagger is having a technology that revolutionizes an industry. It generally takes time, but the Microsoft's of the world were not built in a day either, and most of the big winners here were the ones that took a job from Bill himself.

History demands other things, like watching global wants such as the current green boom, where everyone is suddenly worried about their environment. This helps because legislation is passed and it can become mandated. It also must be better than current technologies and even better if it is less expensive. Lastly, it is nice if they are in a sector that looks to be progressing and that the current boom on their stock is lagging the sector.

Landec is a company that is very interesting going forward. In many ways they are like an agricultural biotech company, such as Monsanto. This company seems to have great things ahead and it seems very cheap with respect to growth possibilities. Their PE ratio sits at 15 and their PEG is .58. Their market cap is a mere $215 million. When the stock first came out all of the hype pushed its value to over $20 per share and even with a massive run up, the stock sits below half of that. Since October of last year the stock has had a major pullback in its current price. At this point, its looks to be way over done and the stock should be watched closely with respect to a high volume bottom before buying in.

Landec specializes in smart polymers. This technology allows plastics to be manipulated with respect to temperature, viscosity, adhesion, and permeability. Their commercial business includes Eatsmart vegetables, Chiquita-to-go in the US, personal care, catalyst products, seed coatings and adhesives in Asia through a co operational effort. Pre-commercial testing includes Chiquita-to-go in Europe, Chiquita fresh and ready, and military applications. Research includes large packaging containers, new targets, air products, medical and industrial applications.

2007 has shown a big turn around for this company and that is why I am starting to get real bullish. Technology based revenues were up 14% year over year. Last year they achieved record earnings, but one has to realize they had a big benefit from the sale of a company. Earnings were $29 million up from $9 million in 2006. Current, ongoing businesses were up 70% increasing their cash position four-fold. The company also has no long term debt. With the large increase in their core, money making business it should keep the company growing until they hit their homerun with one of their technologies.

Currently, their Apio food business is expanding nicely. This is a permeable packaging system for vegetables that allows the product to breath while protected from other elements that causes them to spoil or get dirty. Their packaging with respect to Chiquita bananas looks to have remarkable growth. Currently, their collaboration allows shelf life to increase by one week. All of this with very little implementation within the grocery store market, this looks to change as they are planning a major push into these venues now that they know their technology is working well. Europe is currently looking to OK this use, and things look good, plus it should increase growth going forward. This system looks to be implemented with respect to the military, they are currently investigating the technology and how well food will last with the packaging in extreme environments, so soldiers are able to pack fresh food in some instances.

The seed technology business is also being expanded and is another possibility with respect to a home run. They signed two agreements with Monsanto. The first was to sell their seed business to Monsanto for $50 million in cash. The second they entered into a co-exclusive agreement for five years to use Landec's seed coating technology and in return Monsanto will pay Landec $5.4 million per year in revenue and earnings, plus pay all costs to market and use it worldwide. This contract got my attention, mostly because of the licensing deal to use their product. With the growth and cash Monsanto is making, I would not be surprised if they either buy the technology outright or the whole company.

Licensing seems to be the way that Landec is going with their new technology; they signed an agreement with Aesthetic Services for use as dermal filler. They also signed another deal with Nitta for temperature-activated adhesives in China. Landec is going to continue to find ways to sell its technology, and create new patents.

Going forward the company has highlighted five things going forward they are concentrating on. Their first concern in is to continue to grow revenues, earnings and cash flow. The second is expand their Chiquita packaging technology into major retail locations and even worldwide. The third is to take that same technology and move it to other fruits and vegetables. The fourth to continue to grow their technology currently used with Monsanto and lastly to find new licensing agreements for all of their technologies.

The reason Landec is exciting is that they have two technologies that are either being used or having possible explosive growth. Down the road, Landec has stated that they may be able to decrease land fill substantially, as they are working on a plastic technology that will degrade slowly over a couple of days as temperature increases. This could be a huge thing for Landec as they could use this technology in many different applications, but most suitable in the produce area. All in all, they have great prospects going forward and should continue to increase in stock price as they seem fair valued at today's prices.

This is one of those small companies that, 5 or so years down the road, will be a 10 to 15 bagger in patient investor's portfolios. Between their research division into advanced polymers and existing products protecting fruits and vegetables for sale at grocery stores (not to mention a deal with Chiquita and their bananas) this is going to be a great stock.

LNDC holds patents on and makes specialty polymers that allow various temperature controlled behaviors. This allows them to make clear bags tailored for specific fresh produce products that "breath" in response to temperature changes. This can greatly improve the products shelf life reducing waste and improving quality to the end consumer. In addition to selling fresh bagged produce in their own packaging they have a deal with Chiquita for banana packaging.

They also have a "smart" seed coating that can keep planted seeds from germinating before the temperature is right allowing for earlier planting or release fertilizer onto the seed at the appropriate temperature. These behaviors can be tailored to different types of applications and crops. Monsanto just bought part of their seed business and made a significant licensing deal for their technology. This should provide them with more predictable and possibly great earnings growth over the next several years.

I think they might take a hit this quarter (Q406) because of all of the recent tainted spinach and other recent produce scares. I imagine this has to hurt sales of their bagged produce. I would see that as a buying opportunity. In addition to the products described above there are several other applications for this promising technology under development any of which could be a hit. Long term I expect this to be a big winner.

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.

Landec owns temperature activated polymer technology, and is in the business of exploiting it’s many applications. They currently operate in two segments, value added produce processing, where they package produce in bags and cartons that breathe and therefore increase the shelf life and shipping integrity the produce. Their other segment is agricultural seed technology, where they coat seeds with their temperature sensitive coatings to prevent the seeds from germinating prematurely. Companies like Monsanto and Chiquita are interested in their products and services, and the company is committed to exploring and exploiting other uses for their technology also. The company has little or no debt. The stock price has not kept up with company earnings growth because the PEG ration is only .53. More than 5 analysts cover the company, and they expect 13% sales growth next year, and 27% company growth each year for the next five years. I bought in at 12.70 a share.

Innovative and profitable. Seems to be choosing steady development over fast growth - they're going to quietly build a solid business and not worry about what the market says or does. Products look very useful in a lot of ways, food service is just the tip of a considerably large iceberg.

Re-entering long on food packaging play Landec after recent selloff. Debt free microcap with nearly 40% of current market cap now in cash; attractive long-term growth prospects - looks cheap in here for long term buyers under $6

It's cheap (read: undervalued), the stats look nice and it's a Hidden Gem rec...

Fruit and vegetable producers use their product(s) often, they have a solid market share and this is a growing market. And therefore a growing stock...

Don't know much about the technicals, but I do think their product(s) have a lot of uses in the market for people who want convenience and want to choose healthy alrernatives. I can see their products being used in every convenience store in America soon.

This company is moving very slowly, though prudently, in developing partnerships for their technologies, but that may be a good strategy for them. It's been oversold in this market and should rebound nicely in the coming quarters.

Intriguing new product with lot's of upside and possible alternate uses. I like the fact that it flies under the radar of the mass media. Some what of a gamble due to the dependence on produce now, however I think it's a good bet for potential explosive growth due to an acquisition or expansion of uses for the product itself. Good gamble, I'm in.

I hope this stock isn't tied too closely to the whole "organic foods" bubble, but then who wants to go back to canned vegetables, yuck!!

In nice pullback now, yet still 5 stars, so should be a good time to buy.

Incredibly disruptive technology in its infancy. We can't even imagine all the potential uses of this customizably-breatheable plastic. Already being used in disruptive ways, my favorite being a protective shell around seeds which doesn't open up until the ground gets warm enough, allowing farmers an extra month of sowing time. This is my favorite small-cap.

I am in Long and wasn't totally satisfied with them for the past month but their deal announced today about distributing their Breatheway packaging material into South America is just the sign I was looking for ... impatiently. If this deal works reasonably well for both sides then this will be the future for Landec with this particular technology (WW distribution through joint ventures) and this may also give them the impetus and availability to distribute their other technologies as they have done with Monsanto and their "packaged" seeds.

i think the company has still got some work to do to turn things around.but they been working in the right direction and they are growing. i believe they are positioned to make hefty advances near term. keep and eye on it? of course, but i believe its a buy right now.

Synthetic polymer company with applications in extending shelf life of produce and seeds. Hidden Gems rec at $12. Insider ownership 11% and long term management. Value added business of buying produce, wrapping and reselling is in 46% of US grocery stores. Licensing agreements apt to be the catalyst going forward. 462 M cash and 0 debt. 20-25% growth estimate.

Enough already...this is unwarranted selling on a company that owns technology to enhance store shelf life of produce and other "long lasting" ideas. Pick up more shares here and you wont regret.

many applications for their propietary technology...agri, pharma, any type of time release plastics at least

I KNOW THE INDIVIDUALS INVOLVED, THESE ARE SHARP DUDES, AS WELL AS HONEST. IF MONEY CAN BE MADE, THESE GUYS WILL DO IT, ESPECIALLY NICK TOMPKINS.