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

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