Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (59865)9/28/2017 1:00:31 PM
From: E_K_S  Read Replies (1) of 61045
RE: DF upped position by 30% w/ Buy @ $10.70/share

Used proceeds from my SENEA sale and bought a 2nd lot of DF. This Buy is 12% lower than my previous Buy. I like to add at 10%-15% below the prior levels. GN model does show that DF is 4% undervalued.

The GN model is a lagging indicator as BV and EPS are late to get updated by Yahoo Finance. This one could go lower if food deflation continues. DF does have several regional processing facilities located at/near local dairy farms. They have been upgrading these facilities w/ newer/productive equipment which helped to reduce their production/operating costs.

I still think DF may/could be an acquisition candidate if AMZN/Whole Foods and/or WallMart wants to expand into a private dairy label. Still an issue w/ logistics for door-to-door delivery w/ milk/ice cream but this was done in the past (pre 70's) so it can be done.

Still trying to build AG/food basket of stocks. Value candidates are hard to find and those that are undervalued pay little to no dividend. I might have to expand my definition of Ag/Food basket to include the distribution (logistic/delivery) players and/or distribution/manufacturing and/or move monies into the farm REITs (FPI was selling at a discount to NAV but probably fair value now).

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