Just when you think the American Factory Food industry can’t get any worse:
Arsenic in our chicken NY Times
Speaking of food and the opening day of baseball one of our largest holdings is a food stock: John B. Sanfilippo and Son symbol JBSS. JBSS sells raw and processed nuts including peanuts. Before you speak up, yes peanuts are a legume and not a nut.
Unquestionably the stock is cheap as book value is $18 and the shares sell for $12.88. The stock is also very close to being a classic Graham “net net” but only if you don’t deduct 50% off the value of their inventory of nuts. If you take into effect that the price of nuts is strong and only deduct 25% off the value of their inventory it could qualify.
JBSS ranks at the very top of our proprietary ranking system and we own the shares for our clients. I own them as well.
