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A Stock That\\\'s Thriving in Bad Economic TimesNot surprising in this survey research was that 47% of respondents think the $700-billion bailout of Wall Street had no impact on the economy and that a third of those polled think that the bailout actually made things worse. Clearly, people do not have a favorable view of Wall Street these days. So, along with investor sentiment, "regular people" sentiment has cratered. People are worried about their jobs and they are worried about their retirement. My retired parents have lost a lot of their retirement assets (on paper) that were invested in the stock market along with all their friends. They worry about whether they'll have enough resources to maintain their standard of living down the road. They're hunkering down and cutting expenses. Their shopping behavior has changed and their investing behavior has changed. They won't be doing things like they used to ever again. Recently, I came across a company that's doing great in this market. It called American Italian Pasta Company (NASDAQ/AIPC) and business is booming because people are cutting their expenses -- they still have to eat, but not as fancy as before. AIPC is the largest producer of dry pasta in North America and is making money hand over fist selling private label branded pasta in this slow economy. With plants in Columbia, South Carolina, Tolleson, Arizona, and Verolanuova, Italy, the company has a two-pronged business strategy. It sells its own branded pasta to the largest food retailers and food service companies in the world, and it manufactures a variety of pasta products under private labels, which are resold by stores. Because people are paring down their expenses, more are choosing to purchase a grocery store's own branded products because they are cheaper. As evidence of this successful business strategy, AIPC's revenues for the 14 weeks ended January 2, 2009, grew 53%, to just over one hundred and seventy-one million dollars. Net income in its latest quarter grew substantially to twenty-six million dollars, or $1.23 per diluted share, as compared to net income of $1.4 million, or $0.07 per diluted share, in the 13-week first quarter of fiscal 2008. Just like in my family, people are reining in their expenses. People are cutting back on restaurant expenditures and being choosier at the grocery store. In hindsight, it only makes sense that a company like AIPC is doing great right now. Pull up a one-year chart on the stock and you'll see that it's gone from about $5.00 per share to its current level of over $30.00. That's an amazing accomplishment in a bear market. Profit Confidential --- http://www.profitconfidential.com/ LOMBARDI PUBLISHING CORPORATION News, Analysis, and Information Services Since 1986. One Million Customers in 141 Countries. Lombardi Publishing Corporation Financial Publications Division 350 Fifth Avenue, Suite 3304 New York, NY 10118-3304 --- Copyright 2008; Lombardi Publishing Corporation. All rights reserved. No part of this e-newsletter may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever , without written permission from the copyright holder. Article Tags: Worr About Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORMitchell Clark, B. Comm., Senior Editor at Lombardi Financial, specializes in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for eleven years, is currently authoring a book on how to pick small-cap stocks for maximum profits. Prior to joining Lombardi, Mitchell was a stock broker for a division of one of the largest financial institutions in North America.
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