Vita FD Products (AMEX:VSF)
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Dutton Associates continues its coverage of Vita Food Products
(AMEX:VSF) maintaining a Speculative Buy rating and maintaining its
target price of $4.00. The 10-page report by Dutton senior analyst
Gerald F. LaKarnafeaux, CFA is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and
other leading financial portals.
After three years of poor operating performance there is reason to
believe that Vita is in the early stages of a turn around in sales
growth and profitability. In the first six months of 2006, sales
increased by 16.9%. Net income was $72,000 compared to a loss of
$206,000 in the first six months of 2005. For the full year we are
estimating earnings per share of $0.21 compared to a loss of $0.23 per
share in 2005. Our EPS estimate is at the low end of management’s
guidance of $0.21 per share to $0.25 per share. The improvement in our
opinion is due to a management restructuring that has been underway
since mid 2005. Based on our target price of $4.00 per share, Vita Food
Products is selling at a price earnings ratio of 19 times earnings. This
multiplier seems reasonable when compared to the multiples of a group of
small capitalization (under $500 million market value) packaged food
companies. The average multiple of the group is 22.4 times earnings. The
discount of 15% from the group average fairly reflects the poor relative
earnings performance of Vita in the three years prior to the recovery
year 2006.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$35,000 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $96,250 from
the Company for 16 Research Reports with coverage commencing on
5/07/2002. The Firm does not accept any equity compensation. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.
Dutton Associates continues its coverage of Vita Food Products
(AMEX:VSF) maintaining a Speculative Buy rating and maintaining its
target price of $4.00. The 10-page report by Dutton senior analyst
Gerald F. LaKarnafeaux, CFA is available at www.jmdutton.com as well
as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other
leading financial portals.
After three years of poor operating performance there is reason to
believe that Vita is in the early stages of a turn around in sales
growth and profitability. In the first six months of 2006, sales
increased by 16.9%. Net income was $72,000 compared to a loss of
$206,000 in the first six months of 2005. For the full year we are
estimating earnings per share of $0.21 compared to a loss of $0.23 per
share in 2005. Our EPS estimate is at the low end of management's
guidance of $0.21 per share to $0.25 per share. The improvement in our
opinion is due to a management restructuring that has been underway
since mid 2005. Based on our target price of $4.00 per share, Vita
Food Products is selling at a price earnings ratio of 19 times
earnings. This multiplier seems reasonable when compared to the
multiples of a group of small capitalization (under $500 million
market value) packaged food companies. The average multiple of the
group is 22.4 times earnings. The discount of 15% from the group
average fairly reflects the poor relative earnings performance of Vita
in the three years prior to the recovery year 2006.
About Dutton Associates
Dutton Associates is one of the largest independent investment
research firms in the U.S. Its 31 senior analysts are primarily CFAs
and have expertise in many industries. Dutton Associates provides
continuing analyst coverage of over 140 enrolled companies, and its
research, estimates, and ratings are carried in all the major
databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program
is US $35,000 prepaid for 4 Research Reports, typically published
quarterly, and requisite Research Notes. Dutton Associates received
$96,250 from the Company for 16 Research Reports with coverage
commencing on 5/07/2002. The Firm does not accept any equity
compensation. Our principals and analysts are prohibited from owning
or trading in securities of covered companies. The views expressed in
this research report accurately reflect the analyst's personal views
about the subject securities or issuer. Neither the analyst's
compensation nor the compensation received by us is in any way related
to the specific ratings or views contained in this research report or
note. Please read full disclosures and analyst background at
www.jmdutton.com before investing.