Ariana Research
Long/short equity, deep value, special situations

Paradise, Inc.: A Net-Net That Is Ripe For A Buy-Out

Executive Summary

Paradise, Inc. (OTCPK:PARF) ("Paradise", "PARF" or the "Company") is a leading manufacturer of candied fruits and plastic containers within the United States. The Company has a market cap of $12.0MM, an enterprise value of $11.6MM and a tangible net worth of $19.5MM. As of the last year end, the Company generated $25.7MM in revenues and $2.1MM in EBITDA, respectively .

Paradise is a "hidden champion" straight from Hermann Simon's book, currently left for dead, given its status as a net-net (a company trading below its net current assets). Why does this opportunity exist? (1) illiquidity and volatility of the shares given its high inside ownership and over-the-counter status; and (2) anemic returns on capital for a

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details