Very good writeup! Pesto is a "small cheap luxury" food, which is a relatively safe part of the food industry. Does the rest of their product line fall in this class?
I've been in the SF Bay Area for my whole career, and am impressed that they have maintained their HQ here.
Yes, I would say most of their product line fits that description. Is it the cost of operations that you assume would have driven their HQ out of the area?
Sure, it's expensive. The market for small cheap luxury has a big demographic here, so it's easy to keep their ear to the ground about how their target market feels. And, I'm sure a lot of their production is in the Central Valley, so they're in the same time zone, and can just drive out to the field sites on day or 2-day trips. The Tri-Valley Area is a long north-south valley between us and the Central Valley, and that's where you live if you want a Bay Area job but want to live apart from "them libruls"- one town (Pleasanton) has a big Mormon population, I think. Many companies moved regional HQ from SF to the Tri-Valley starting in the 90s.
Hayward has a Cal State campus for recruiting local go-getters. MC Hammer did a business degree there!
Very good writeup! Pesto is a "small cheap luxury" food, which is a relatively safe part of the food industry. Does the rest of their product line fall in this class?
I've been in the SF Bay Area for my whole career, and am impressed that they have maintained their HQ here.
Yes, I would say most of their product line fits that description. Is it the cost of operations that you assume would have driven their HQ out of the area?
Sure, it's expensive. The market for small cheap luxury has a big demographic here, so it's easy to keep their ear to the ground about how their target market feels. And, I'm sure a lot of their production is in the Central Valley, so they're in the same time zone, and can just drive out to the field sites on day or 2-day trips. The Tri-Valley Area is a long north-south valley between us and the Central Valley, and that's where you live if you want a Bay Area job but want to live apart from "them libruls"- one town (Pleasanton) has a big Mormon population, I think. Many companies moved regional HQ from SF to the Tri-Valley starting in the 90s.
Hayward has a Cal State campus for recruiting local go-getters. MC Hammer did a business degree there!
Nice write-up. AMNF is a good example of what higher quality microcaps can look like.
Thank you. We agree.
Very interesting write up on a stock I've not heard about. A high quality small cap is one where your risk to reward will always be in a good place.
Great article as always guys!
Thanks, Oliver! Thanks for commenting and helping to spread our work.