I purchased GMK on 12/11/07 for $12.94. I consider this a good value play because price to sales = 0.5 and price to book = 1.2. Also, % debt to capital is a decent 32%, ROE is at 22.5%, and 5 year EPS growth is at 43.9%.
This is a Mexican tortilla company. Take a look at the popularity of Mexican food, sandwich wraps in non-Mexican restaurants (two new casual dining restaurants opened in my town and both prominently feature wraps on the menu) and the burgeoning Hispanic population in the US.
Free cash flow has been positive in four of the past six years and management is splitting it between the shareholders (as dividends) and acquisitions, buying small tortilla companies around the world and introducing their raw materials and processes to improve local market share and profitability. Their Mission brand is the top seller in the US.
My sell price is $18.
$13.28 (01/02/08)
