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Hi all,

They nearly doubled their earnings for 2003 to 1.61 from .84 in 2002. Estimates are 18% higher in 2004.

John B. Sanfilippo & Son, Inc. (JBSS)
19.38 is the present price
183 million market cap

Hi to all the future posters on this message board. I think this one is a pretty good buy. I expect the board will start to fill up soon.

tom
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Hello yourselves,

#7 on Monday, Oct. 27 IBD 100 and todays MrMarket pick admin@mrmarketishuge.com

Sounds like a good one, although perhaps a bit overextended.

David
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Hi David,

It ran up considerably since the earnings report.

1995 1996 1997 1998 1999 2000 2001 2002
SALES ($MILL) 277.7 294.4 133.1 317.4 319.2 333.3 341.4 343.2

Revenue growth is slow. only approximately 3%+ over the last 7 years.

But that changed in 2003 as sales went up 19%. Net income was up 94%.


Net sales for fiscal 2003 increased by more than $65 million to approximately $408.5 million from net sales of approximately $343.2 for fiscal 2002. Due to the addition of new customers and increased sales at existing customers, fourth quarter and fiscal year net sales increased significantly in the Company's consumer, industrial and export distribution channels. The gross profit margin for fiscal 2003 increased to 15.1 percent of net sales from 14.1 percent of net sales for fiscal 2002. The gains in the gross profit margins for both the quarter and the year were primarily attributable to lower peanut costs and increased plant utilization from the volume gain.


The first quarter was very good too.

Basic EPS of $.77 per Share Increases 328% over the 2003 First Quarter

ELK GROVE VILLAGE, Ill., Oct 22, 2003 (BUSINESS WIRE) -- John B. Sanfilippo & Son, Inc. (JBSS) today announced record operating results for its fiscal 2004 first quarter. Net income was approximately $7.2 million, or 77 cents per share basic (76 cents per share diluted). The current first quarter net income more than quadrupled the first quarter 2003 net income of approximately $1.7 million or 18 cents per share (basic and diluted).



The PE is still low. It may still be a bargain.

Good to meet you David.

tom
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1000,

Great pick. I'll be following the company with you...
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Great find Tom,

I bought in today at almost triple the price you paid.

The momentum must scare people because the board did not fill up.

Dave
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Hi Dave,

You are right the board never picked up. I suppose JBSS was a bit on the small side. And until this year, I doubt if many ever heard of them. The momentum thing that you mentioned probably did scare a lot of people off. It did go up very quickly.

One I am looking at now and bought some too is CALM Cal-Maine. It is benefiting from the same protein diet programs that are very popular now such as the Adkin's diet. Eggs are selling at the highest prices they have sold for in 23 years. It is still a very cheap source of non-meat protein. It has also benefited from the negative news about mad-cow disease.

JBSS has a much higher barrier to entry into their markets. It is far harder to start raising peanuts than increasing the hen population. In fact, that is the real threat to CALM. As the high prices continue, producers are likely to increase the hen population bringing more eggs to market which will lower the prices and margins for companies such as Calm.

Calm is the largest egg producer in the US serving 26 states. It has a very low multiple and the last two earnings reports have been spectacular. It appears to be shadowing JBSS's success.

When I first found JBSS, it too had a very low multiple. CALM has a multiple of near 12 about the same as JBSS was when I first posted about it. I think CALM has similar prospects. The next quarterly report will be out in March and I am figuring investors will bid it up expecting a similar report as the previous two.

tom
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