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Author: IlanBigfoot Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7  
Subject: Re: Hmm... Date: 2/22/2005 12:57 PM
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You're close. Here's the next post in a little less than 3 years. Can you say this stock is not widely followed?

From a SmartMoney Feb2005 article I found on www.nbcfiz.com:

NATIONAL BEVERAGE (FIZ) National beverage knows that plain old cola just isn't cool anymore. Today Americans want bottled water, seltzer, fruit juice and energy drinks. So in 2002, the Fort Lauderdale, Fla.–based company scaled back its private-label soda business to focus on premium drinks. While it still sells the decades-old Shasta and Faygo brands, today it also sells Everfresh and Frutika fruit drinks, LaCroix spring water and VooDoo Rain herbal beverages. In September the company introduced Rip It and Rip It Lite energy drinks.

“It's a model that maybe Coca-Cola should follow,” says Jeff Auxier, manager of the Auxier Focus fund, which owns the stock. “This company went away from pricing competition and tried to develop drinks that are more tailored to the consumer, which seems to be working.”

National Beverage's sales took a hit when the company reduced its private-label business, but the move has helped push profit margins to 5.9 percent from a low of 4.7 percent in early 2000. The stock is thinly traded, with a market value of $348 million, and CEO Nick Caporella owns 77 percent of the shares. But at just 12 times cash flow, compared with an average of 15 times for the non-alcoholic beverage industry, the stock looks like a keeper.

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This is a strange stock at first glance. Profits are low single digits, ROE is fair at the low teens. What is nice is cash is about 1/6 the stock price, making the EV/FCF = 12. That's more like it.

Earnings have been consistantly climbing up for years, though at the very low pace. Still no dividend.... The CEO owning most of the company is interesting, too.

Best I can figure is the stock is fairly valued at $8-9. I'll look again if the stock drops to $6-7. In other words, when it drops below its 52 week low of $7.50.
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