Friday, November 13, 2015

The Bowser Report – Daily Mover Alert November 12, 2015

Today, The Bowser Report issued a daily mover alert on Innovative Food Holdings (IVFH), which gained 10% or more today.

IVFH closed up 13% on huge volume today following pre-market news that the company intends to spin-off its The Fresh Diet subsidiary. IVFH hit an intraday high of $1 per share.

The company cited the following reasons for its decision:
•           Innovative Food Holdings and The Fresh Diet management will each be able to better focus on their core businesses and more effectively drive growth in shareholder value;
•           The Fresh Diet will become a pure-play direct-to-consumer business, ideally positioning The Fresh Diet to realize the higher valuations typically associated with foodtech and food-delivery public companies;
•           As a standalone public company, The Fresh Diet will be able to take advantage of acquisition opportunities in multiple fresh meal verticals, building upon its leading last mile specialty food delivery platform;
•           Innovative Food Holdings shareholders will continue to benefit from future success of The Fresh Diet through Innovative Food Holdings’ remaining ownership stake;
•           Two separate companies will allow potential new investors to delineate the risk/return characteristics of each business and better match their own investment objectives.
Of course, the exact effects of this are yet to be seen. With that said, we recommend sticking to our previous analysis on IVFH: do not open a new position and follow the Game Plan if you do.

To learn more about The Bowser Report, visit https://thebowserreport.com

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