Darspal S Mann
Long/short equity, growth at reasonable price, special situations, Deep Value

J&J Snack Foods: Underneath The High Safety Premium

It seems the only concerns against J&J Snack Foods (JJSF) are a rich valuation and the company collecting cash instead of doing any major share repurchase or acquisition, not a bad place to be in the current environment. Rather than worrying about the high 'safety premium' attached to the name, it looks like a perfect time to look at the various growth catalysts and potential opportunities that can create significant value for the shareholders. The market dislocation underway may even offer a great entry point.

The company has been a consistent performer (175 straight quarters of top line growth and counting), consistent value creator, fiscally disciplined and a regular dividend payer for many years. While easing commodity cost...

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