Long LNCE – 8/19/15 Call Replay and Slides
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Our LONG thesis on LNCE is focused on three key points:
LNCE has repositioned their portfolio since the merger in 2010. They are now fully focused on branded products.
One of their biggest advantages is their Direct-Store-Delivery Distribution System (DSD). DSD is a big revenue driver, representing roughly 71% of sales.
LNCE has products for every occasion, from better-for-you to indulgent and everything in between.
Snyder’s-Lance has gone through a period of broad based investments in infrastructure; they are now past this and shifting spending towards growing the top line.
LNCE has plenty of dry powder to do a deal, and they are looking.
Our projected top line growth yields strong results.
Margins are going to expand as LNCE leverages their newly remodeled system.
We see a solid 25%+ upside to the name without accounting for accretive acquisitions.
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