Markets

Watch List for Wednesday 5-4-2005

FCDH had a huge volume day and ended up over 9% for the day, up huge since last week. I think I have found the next winner below.
Often times many people ask me to profile companies that have not started running, the unknown hidden gem. The kind of company that gives people an opportunity to get in at group levels, so here it is. Take a look at SSBN. SSBN is in pending acquisition of a food company worth multimillion dollars.
There is one thing every person on earth must do, that is to eat. That is why many food companies do so well. I have been reading up on SSBN, a healthy organic foods company in a $50 billion industry. With obesity at an alarming rate, many Americans have turned to healthy foods.
Junk food companies such as Krispy Kreme, once a wallstreet darling trading at $50 has now krumbled to under $10 as investors look for healthier food companies.
The simple fact is Americans want to eat healthier, when egg company CALM became popular a few years ago, the stock exploded from $2 to over $40. Could SSBN run like this? SSBN is a very exciting company so keep reading. You can read their fact sheet at: http://www.sunsetbrands.com/docs/releases/factsheet.htm
SSBN just recently announced they are in pending acquisition of US Mills, US Mills has been in business nearly 100 years. US Mills had revenues of $15.8 million in 2004, and $1.7 million in Feb. 05 sales, and increase of 41% vs. the year before.
The healthy food industry is growing at a ridiculously fast rate, last year Subway was the #1 franchise in the US. American just want to eat healthier. SSBN's core strategy is to identify and acquire strong brands across multiple healthy food categories.
The market for organics is expected to reach $31.7 billion by 2007. The US mills portfolio consist of many well known brands such as: Uncle Sam Cereal, Erewhon, Farina Mills, Skinner's, Bella Carb, Carb Ole, Low Carb Creations. All of these brands are common popular brands that are sold through supermarkets, merchandisers, and natural specialty food distributors.
Based in Los Angeles, California, SSBN is poised to become a category leader in the high-growth better foods and nutrition categories through the rapid expansion of product lines and the acquisition of appealing nutritional content, healthy, natural/organic and functional food brands.
Recent News:
Sunset Brands Updates Acquisition of U.S. Mills Business Wire (Mon, Apr 25) Sunset Brands Updates Year-to-Date Performance for Acquisition Target U.S. Mills Business Wire (Thu, Mar 10) Sunset Brands Enters Into Definitive Agreement to Acquire U.S. Mills A Leading Natural and Organic Foods Company PR Newswire (Sat, Feb 19)

posted by Juan Dosil @ 11:19 PM