March 27, 2017

MGP Ingredients

We feel like a SITTING DUCK on the markets.

“It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait.” – Charlie Munger

MGPI (US55303J1060)

MGP Ingredients, Inc. is a holding company. The Company's principal operating subsidiaries are MGPI Processing, Inc. and MGPI of Indiana, LLC (MGPI-I). The Company produces and supplies distilled spirits, and wheat proteins and starches.

Market: Nasdaq

http://www.mgpingredients.com/


Gain over the quarter: +7.7 % 






Fair value: $ 92
Discount: 70%
Average yearly return: 59%
Yield: 0.31%
Outperformer

On March 8, 2017 MGP reported results for the fourth quarter andfull year ended December 31, 2016.
* Net sales decreased 0.4% to $81.1 million
* Gross profit increased 11.6% to $17.6 million
* Gross margin increased 2.4 percentage points to 21.7% of net sales.
* Operating income increased 5.2% to $10.6 million.
* Equity method investment earnings increased from $0.1 million to $1.8
million.
* Net income increased 27.9% to $8.3 million. 

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