Harry & David Is An Overlooked And Undervalued Post-Bankruptcy Play

http://seekingalpha.com/article/1627572-harry-david-is-an-overlooked-and-undervalued-post-bankruptcy-play?source=feed By John Leonard:

Harry & David (HARR.OB) continues to trade at a distressed multiple despite exiting from bankruptcy with its strong brand name intact, a significantly lower cost structure and high free cash flow (FCF).

Company overview

HARR.OB is a vertically integrated, multi-channel specialty retailer and producer of branded premium gift-quality fruit, food products and gifts marketed under the Harry & David, Wolferman’s and Cushman’s brands. HARR.OB sells its products through catalogs, online, business-to-business, consumer telemarketing, 50 Harry & David retail stores, a Cushman’s seasonal store as well as wholesale via other retailers. HARR.OB ensures high quality products by growing much of what it sells.

The three reporting segments are direct marketing, stores and wholesale.

Note: Although HARR.OB no longer files reports with the SEC, audited (by BDO) financials are available on the company website.

Investment thesis

HARR.OB is significantly undervalued due to a lack of investor following (including no analyst coverage), Complete Story »

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