Armanino Foods Of Distinction Inc. (OTCMKTS:AMNF) Refuses to Jump
The world of penny stocks is full of companies that have been working at a loss for years. There are also companies that have yet to start any sort of operations and some are even set up not with the purpose of getting the business off the ground, but with the idea of enriching some behind-the-scene people whose reputations is less than stellar. Armanino Foods Of Distinction Inc. (OTCMKTS:AMNF) fits into neither of these categories.
The company has been around for a while and about ten years ago, their stock was even listed on the NASDAQ stock exchange. In 2005, the management team decided to voluntarily terminate the registration with the SEC, but it would appear that this move hasn’t affected AMNF‘s operations at all. Don’t believe us?
Here’s what the company recorded during Q2 of 2014:
- cash: $2.3 million
- current assets: $10.1 million
- current liabilities: $3 million
- quarterly revenues: $7.6 million
- quarterly net income: $975 thousand
When you take a look at the previous reports, you’ll see that, apart from a few dips here and there, the revenues have been experiencing a steady growth. Profitability is remarkably consistent, especially for a penny stock on the Pink tier and they’ve even been giving dividends for the last fifty-seven consecutive quarters.
As if that wasn’t enough, AMNF announced on Friday that the jump in sales and profits during Q3 has been bigger than expected. If the figures in the press release are correct, the next financial report should boast about $8.7 million in revenues and a net income of around $1.1 million.
Even the share structure looks decent enough. AMNF repurchased and canceled 3.1 million shares a couple of years ago and since then, they have managed to avoid replacing them with a significant amount of discounted stock.
All in all, there isn’t a whole lot not to like about AMNF. It is a profitable company that appears to be growing steadily. The regular dividends suggest that the members of the management team are doing their best to keep the shareholders happy and on the whole, the ticker looks like one of the more interesting investment opportunities on the OTC Markets.
Unfortunately, despite the numerous advantages, AMNF‘s performance is far from perfect. We reckon that the stock’s behavior on Friday hammers the point home nicely. AMNF did fluctuate a lot throughout the session and at one point, it managed to hit an intraday high of almost $2.10 per share. Unfortunately, staying at these levels proved to be impossible and when the closing bell rang, it was sitting at $1.95 (1.02% in the red). The overall movement is relatively flat and there are no serious drops, but even so, breaking through the $2 barrier for prolonged periods of time is proving to be elusive.
The bigger problem, however, lies with liquidity. While the delisting from NASDAQ hasn’t hampered the company’s progress when it comes to operations and profits, it has affected investors’ attitude towards the stock which means that daily trading volumes are absolutely pitiful. Despite the positive Q3 figures announced on Friday, investors still failed to trade more than $265 thousand worth of shares which, let’s face it, is not that great.
It would appear that the traditional Italian food business plan simply isn’t interesting enough for the penny stock market and AMNF‘s shareholders can do little more than hope that this is about to change. Otherwise, their only income coming from the stock will be the dividends which for Q2 of 2014 amount to just under $0.02 per share. It’s up to you to decide whether that’s enough.
