tag:blogger.com,1999:blog-2149523431587168680.post4561017608119264162..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Hershey Creamery, a multibagger or mediocre?Nate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-2149523431587168680.post-48298535184151634072016-12-01T18:53:12.810-05:002016-12-01T18:53:12.810-05:00I've been watching this stock. It just went up...I've been watching this stock. It just went up 85% today, to $6K. Anyone know what happened? Buyout offer? I can't find any news.Egghttps://www.blogger.com/profile/11636277588392448555noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-55917301449527578502012-04-20T16:26:45.723-04:002012-04-20T16:26:45.723-04:00Nate
Where would I find financial statements for ...Nate<br /><br />Where would I find financial statements for the company? ThanksNicknoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-78131033619089786252012-04-12T12:47:17.144-04:002012-04-12T12:47:17.144-04:00No relation at all, Hershey Creamery was started b...No relation at all, Hershey Creamery was started by the Hershey family near Hershey PA. Confusing I know, there have actually been a number of lawsuits back and forth over the years. The Hershey candy company has sued Hershey Creamery saying the name was an infringement. Eventually they settled and Hershey Creamery has to put a disclaimer on their website and all their products saying they're not associated with the candy company.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-30178048321209464982012-04-12T12:41:54.705-04:002012-04-12T12:41:54.705-04:00I can't help but ask is Hershey Creamery relat...I can't help but ask is Hershey Creamery related to the candy company Hershey or was it at some point in the past. Very interesting question I just had to ask.Penny Stock Investinghttp://www.manhattancalumet.comnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-36043984265538292142012-04-05T01:31:29.749-04:002012-04-05T01:31:29.749-04:00With the net income being 3.7M the ratio and an EV...With the net income being 3.7M the ratio and an EV of 15M it does seem cheap to me. Even though you tie up 1700 now (if you can get it at that price), that value grows every year in cash after the small dividend. So you could say that cash/marketable securities grows by 85 or so a share. <br /><br />That being said, I am not buying as the stock is not just illiquid but not trading for 2+ months. If it was trading for less then cash and growing book value I would be interested and just follow Buffett's advice. "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."Joshhttps://www.blogger.com/profile/12028228587020987588noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-42258666513782685092012-04-05T00:14:57.963-04:002012-04-05T00:14:57.963-04:00Anon,
Thanks, I agree with you, sales haven't...Anon,<br /><br />Thanks, I agree with you, sales haven't been all that great. In the 2010 letter management thought sales might fall a bit in 2011 due to high gas prices. Considering prices have only gone up since last year I'm guessing sales have taken a hit again.<br /><br />This could be a great investment if management decided to pay out a large dividend or get serious about growing operations. Unfortunately for investors they seem happy with the status quo.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-81763371844166774912012-04-05T00:05:50.855-04:002012-04-05T00:05:50.855-04:00Nate,
Great write up. Since the Intrinsic Value o...Nate,<br />Great write up. Since the Intrinsic Value of this company is largely based on it's sales, I think it is worth looking at Management's track record on the Sales front. They had sales of about 84 Million (from Walker's Manual) in 1998. And only 94 Million in 2010....Not even keeping up with inflation. I would conclude that management is not adding value to this company (other than piling another 3,000,000 into securities each year). Even though it is selling at 50 cents on the dollar...... not cheap enough to risk sitting on this another 10 years without an increase in the Intrinsic value of the investment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-91429999619181416222012-04-04T15:27:58.651-04:002012-04-04T15:27:58.651-04:00Stock Chump,
Thanks for the comment and complimen...Stock Chump,<br /><br />Thanks for the comment and compliment. The $3.7m doesn't include the securities those bypass the income statement and are recorded on the equity statement. If I remember correctly the changes from 2009 to 2010 weren't that significant, most of the securities are in bonds and fixed income investments with some mutual funds.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-70987458463248604422012-04-04T15:15:07.329-04:002012-04-04T15:15:07.329-04:00Only just found your blog yesterday and already my...Only just found your blog yesterday and already my second comment (my way of saying great work Nate). My speculation for the high cash holdings would be a hope for a one time holiday (like repatriation that was done a few years ago for foreign cash) as the family does not need the income in the short term. <br /><br />I am confused on the valuation. At 3.7M Net income does that include the cash/marketable securities income or not? What is the income with/without it?Joshhttps://www.blogger.com/profile/12028228587020987588noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-72087394933220910732012-04-04T13:15:49.410-04:002012-04-04T13:15:49.410-04:00Tim,
Completely agree about a dividend. Right no...Tim,<br /><br />Completely agree about a dividend. Right now the cash seems like a way for the Holder brothers to shelter wealth tax free and dribble it out as dividends.<br /><br />Like I mention in the post, Hershey isn't as compelling as some other unlisted companies in terms of value creation. I'll keep my eyes on them but I can't bring myself to buy shares right now.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-9544351829535652252012-04-04T12:43:37.796-04:002012-04-04T12:43:37.796-04:00If they paid a $1,000 per share special dividend i...If they paid a $1,000 per share special dividend it would get interesting. Their ROE would look better and it would be trading around 7 times earnings. Which would give a decent earnings yield.<br /><br />This is the challenge with many unlisted family controlled companies - there is value but management seems in no hurry to unlock it.Timhttp://www.eriksencapital.comnoreply@blogger.com