Nestle’s purported move highlights what I wrote about the explosive growth of the Kosher food market. This validates G.Willi Food’s plan of aggressively entering the U.S. market with its wide array of Kosher food products. Aside from the quick few million dollars it would pocket from such a sale of the Goldfrost subsidiary, I believe this could help forge some kind of relationship with the parent company as well, which would be a big, and unexpected benefit to G. Willi Food.
Based on its financials, it is already an attractive investment opportunity. Its PE is under 11 which is more than half the industry norm. With revenues increasing by over 25%, and strong gross margins,G. Willi Food continues to be an intriguing investment for years to come.
Disclosure: The author’s fund is long WILC as of June 6, 2007.
WILC 1-yr chart