Long/short equity, value, special situations, growth

Annie's: Analyzing The Investment Opportunities After Guidance Cut Drove Stock Lower

When I wrote about Annie's (NYSE:BNNY) in September, I considered the valuation too high (Annie's: A Healthy Valuation For Natural Foods Growth). Annie's subsequently rallied, but has traded down since October 21 when management said that Fiscal 2014 EPS would be at the low end of its guidance range. In this article I will analyze Annie's recent events, including the guidance cut, secondary offering and stock price slide. I will also discuss my valuation outlook for Annie's and a possible long/short trade. I am still bullish on the organic/natural foods sector and I am waiting for an opportunity to invest in Annie's (and some of its peers) at better valuations.

Key Drivers

    Stock price under pressure...
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