Q: Would appreciate your current opinion on this company. Thanks
5i Research Answer:
GCL was in the midst of a fairly decent turnaround, which now seems to have stalled somewhat. It lost money in the trailing 12 month period. Debt is very high at $223M, and has risen about $70M this year. Sales growth is looking OK, but we need to see better earnings and cash flow to offset the balance sheet and size risk. The dividend was halted 10 years ago. The wholesale food business is very competitive and we do not see the company as having much of a moat here. We would consider it too small and risky today for serious endorsement.