Armanino Foods (AMNF) delivered another great quarter. Can this be an Anti AI play ?

Tell me what “moat” means to you.

Competitive advantage that cannot be easily penetrated. In AMNF case the restaurants dishes are locked and AMNF pesto sauce is an integral part of it. Restaurants will never take a risk for 50 cents of increase in price per bottle.  Now tell me what you think of moats ? With a specific example of why AMNF is not a strong moat. Or example of another small scale listed company. 

AMNF is my favorite microcap and has become one of my top 5 holdings! I’m looking forward to some good things from management team. Hopefully some expansions and partnerships in the QSR field and an uplisting from OTC to NMS market. I It’s 100% an anti-AI trade. If I recall the beta on AMNF is like 0.2. I love that they are 100% debt free, profitable and have paid a dividend for decades.

Congrats. Did you see today's earnings ? It's 1/3 of portfolio. I have close to 10k shares. But I recently made a position. What you think of them in the near term and long term (since you have seen many tides) ? 

I just looked at news, good stuff. The company has always been conservatively run with good financials. Held up well even through COVID. They hired new CEO Deanna Jurgens about a year ago, she has background in ‘big food’ so to speak and this is her first CEO job. She has plan to substantially grow company through expanding into new markets, shifting focus from less profitable markets. All while respecting and maintaining the historically rock solid balance sheet. Today’s earnings show that she is executing her plans, and doing a good job at it. I love that they are both streamlining and consolidating operations in brand new facility, and increasing production capacity at the same time. The fact that they are doing that $27M with cash makes me feel like Deanna and her team are doing it the right way and not taking on debt. I think the best is yet to come and that the continued execution will move the stock markedly higher. There’s just about no institutional ownership of the stock either, an uplisting to Nasdaq NMS or NYSE would help in that respect as well as increasing liquidity. I’m up 4x on the stock now and would be surprised if the next 5 or 10 years don’t bring similar results compared to where we are now. My fear, really, with AMNF is that they get acquired to soon. With a current market cap around $330B there are plenty of companies that could make a bid even now!

Great. Do you mind disclosing your other four top holdings ?

Largest are all shit that has gone up a lot over the years, GOOG, PLTR, Berkshire, Fairfax, same with Armanino, my avg on AMNF is around $2.50 so the position grew a bit.

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