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Bruce Pile
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Stock analysis is a serious hobby for me. I compete 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. I've been running 4 funds there for... More
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  • 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
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