Hanover Foods FY 2021 Annual Report

The Hanover Foods annual report for 2021 came in last week.

At a share price of $63 for the HNFSA (non-voting) share class, the market capitalization of the company (with 706,846 common shares outstanding) is now about $45 million, compared with net current assets of $101 million ($144 per share), and a book value of $241 million ($341 per share).

That is 45% of current assets (net of all liabilities) and 19% of book value.

Hanover's earnings were not as good in FY 2021 as in FY 2020. Their revenue declined from $401 million to $369 million, and gross profit declined from $41 million to $28 million. On the plus side, SG&A expense shrank by $3.8 million, with the result that operating profit was still $2.4 million.

Hanover bought back stock last year: 8,329 of the voting (class B) shares for $1,304,000, which was $156.56 per share. Those trade more expensive than the class A shares, but the $156.56 is still more than double the recent trading price $71 of the B shares. (The share classes have the same economic interest.) This is the first time we have seen Hanover repurchase a significant amount of stock.

We'll have much more about Hanover Foods in the upcoming November Issue of the Oddball Stocks Newsletter.

Our past posts on Hanover Foods:

The annual report for the most recent fiscal year (2021) that ended May 30, 2021:

Hanover Foods Corp 2021 Annual Report by Nate Tobik on Scribd

LAACO Is Said to Explore Storage West Sale as Self-Storage Booms ($LAACZ)

From Bloomberg (h/t @Catahoula_Value)
LAACO Ltd., owner of the Los Angeles Athletic Club and the California Yacht Club, is exploring a sale of Storage West, its division that acquires, develops and manages self-storage facilities, according to people with knowledge of the matter.

Los Angeles-based LAACO, which has shares that trade over the counter, is working with an adviser to solicit interest in Storage West from potential suitors, said the people, who asked not to be identified discussion private information. A targeted valuation couldn’t immediately be learned.

A spokesman for LAACO declined to comment. Storage West directed inquiries to its parent company.

Storage West, founded in 1978, operates almost 60 facilities in California, Nevada, Arizona and Texas. It posted “impressive year-over-year growth” and recorded occupancy of 92%, according to LAACO’s 2020 annual report, written by Karen Hathaway, the company’s president and managing partner.
Nate posted about LAACO way back in April 2014 when shares were trading for around $1,100. Shares are up 2.4x since then plus it paid $712 in dividends along the way.

Oddball Stocks Newsletter Excerpt: "Full Steam Ahead" by Guest Writer "Catahoula"

This excerpt is from the most recent Issue (#36) of the Oddball Stocks Newsletter: a guest piece by "Catahoula" (@Catahoula_Value).

Catahoula Excerpt by Nate Tobik on Scribd

Just Published: Issue 36 of the Oddball Stocks Newsletter!

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