Bruce Pile's  Instablog

Bruce Pile
Send Message
I run a model fund at Ken Kam's Marketocracy, where they do capital management using the best member mutual fund track records with extensive tabulations of alpha, beta, R-squared, and many other fund management evaluations. Marketocracy Capital Management offers SMA (Separately Managed... More
My blog:
Good Stock Investing
  • JBSS - A Stock of Interest 0 comments
    Nov 21, 2009 12:01 PM | about stocks: JBSS

    I've been stalking this one for awhile.  John B. Sanfilippo & Son Inc. (JBSS for short) markets nuts in the U.S.  You wouldn't think that would be a very good thing right now with nuts being discretionary consumer spending - not exactly a necessary foodstuff.  But the downturn hasn't even put a dent in their climbing eps or cash flow curves. The stock has very good valuation with price/sales at 0.27 and price/cash flow from operations at an absurd 2.3, but its technical condition is even more interesting.  (click to enlarge)

    The stock is moving out of a multi-year downtrend against a positive A/D divergence (usually a good thing) and seems to have developed a mind of its own since this breakout in August. The A/D curve is at a buy dip condition that was very rewarding the previous two occasions. I've bought and sold this one already this year, selling it at $10 and change for about a 20% gain, but now I'm slapping myself for exiting way too soon. If it stays in the A/D trend, it may be starting a nice new upleg.

    Stocks: JBSS
Back To Bruce Pile's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.