Armanino Foods (AMNF) Case Study Part 2 – Digging Into Financials
It’s been a bit of a winding road since part one of this case study was posted on May 5th…
Since then we’ve talked about: Why the P/E Ratio Is Useless and How to Calculate EV. Explained Earnings Yield and why it’s important. Answered the important question How Do You Find Stock Opportunities. Showed How To Value And Evaluate Insurance Companies. And showed How Not To Be A One-Legged Person In An Asskicking Contest.
Get FREE access to 17 of our best training videos from the past by clicking here.
I did this because we don’t just need to know what everything means. We need to know why everything is important too.
Knowing why gives us a deeper understanding of the concepts used to value and evaluate companies. And lets us start forming our investment philosophy. So if you missed anything above make sure to check them out.
And now that we understand all the concepts talked about in the first part of this case study, it’s time to continue. And this time we start to dig into the financials.
Starting The Real Analysis
Since Armanino passed my preliminary test and looks like it may be a good company to invest in. It’s time to get into the real meat of the analysis and dig into the financials.
The financials I use at this point are the most recent quarterly report. Most recent annual report, if different from the most recent quarter report. And the most recent proxy if available.
You can find this info at either Morningstar or the company’s website.
If you’re following along you’ll notice Armanino Foods most “recent” proxy report is from 2004. This is useless information 11 years later.
Sometimes OTC companies like AMNF won’t have up to date info available. If you can’t find the information you want you’ll need to contact the company to see if they will send it to you. But in this case AMNF’s proxy is in its annual report so we don’t have to dig for it.
To get AMNF’s most recent annual and quarterly report you need to go to the company website page linked to above.
Click Here To Join Our Newly Relaunched Masterclass To Become A Great Value Investor Within Weeks.
Here's What Matteo A. Said About The Masterclass - "Good choice to decide to join this group. I made the same decision as you to seriously learn investing and this seems a great place to start. You will learn a lot from this course and Jason is always available to help you with any questions or doubts you may have during the journey."
For some reason Morningstar doesn’t have Armanino’s updated financials. This is something else you need to watch out for too when dealing with OTC companies.
For example, I started reading AMNF’s 2013 annual earlier today because I thought it was updated on Morningstar. Double check you have the most recent information.
Below is a link to the unedited notes I took while reading Armanino Foods most recent financial reports.
What stood out to you from Armanino’s financial reports? Do you still consider them a possible investment after reading its most recent financials? Let me know in the comments below.
In the next few days I will add my notes to the ones above and tell you what I think of the financials. But I will release these exclusively to Press On Research and Value Investing Journey subscribers.
To subscribe to both you can do so at the links above or below.
***
Don’t forget, if you want to receive two free gifts that will help you evaluate companies faster. Get all future blog posts. Get future case study information first. And be entered to win a hard copy of: The Snowball – Warren Buffett and the Business of Life and a $50 AMEX gift card. Sign up for the Value Investing Journey newsletter here.