INBP...Serving This Up On A Silver Platter

This probably isn't your typical penny stock. Because it's actually a deep value-play. And it probably won't be a quick mover either...unless it gets acquired (which I believe it will)....but more on that later. What we have here is a company in a predictable and growing industry. Vitamins/supplements/nutraceuticals will be having tailwinds for the foreseeable future. An aging population and a friendly administration to non-pharmaceuticals will provide needed fuel to continue stable growth into the years ahead. The company currently trades at a $9.6m market cap. They have $4.7m in cash and 0 debt, giving us an enterprise value of $4.9m. Fiscal 2025 revenue (ending June 30th) was $54.3m, compared to $50.3m in the year ago period. Quarterly revenue can be a bit lumpy here, but on aggregate this is a growing business. **The stock currently trades for just 0.1x revenue. That's undervalued clue #1** The company has trailing 12-month EBITDA of $2m. On an **EV/EBITDA basis this is 2.4x. That's undervalued clue #2** Balance sheet is solid with the aforementioned cash pile and 0 debt. The company's inventory is $10.5m, which is more than the current market cap of the company. **Simply put, they could close their doors tomorrow and sell their inventory for more than the entire company is currently trading for. That's undervalued clue #3** The hidden value here is really in their real estate. They only have their entire property & equipment valued at $1.8m. This is despite owning a 40,000 sq ft manufacturing facility in prime New Jersey real estate. Comps in the area would value this on the secondary market in the $8-10m range. **The difference between what they have their real estate on the books for and what it's actually worth is nearly more than the entire market cap of the company. That's undervalued clue #4** Even with the real estate undervalued on the balance sheet. The net tangible assets of the company are still twice the current trading value. **Simply put, the company could be liquidated today for twice what it is selling for, without assigning any value to the profitable operations of the business. That's undervalued clue #5.** I've always tried to align myself with people smarter than me. And the fact that the stock is 40% owned by the billionaire founders of Celsius energy drinks is probably a good sign. The DeSantis family, thru CDS holdings, control just over 13m shares, or about 43% of the stock. Damon DeSantis is on the Board of Directors of both Celsius and INBP. William Milmoe is on the Board of INBP, and Chairman Emeritus of Celsius. It would stand to reason that they will eventually just take this company private at a significant premium to current values. I'm sure they're looking at the same numbers I'm looking at, and realize the company's assets are probably worth around $1/share (current share price is in the low $0.30s). And that's valuing the company's profitable operations at $0. We're just talking assets here. **Risks:** As with most penny stocks, things are never going to be perfect. You have to be able to accept some risk for potential reward. The main risk here is with customer concentration. The company has 2 main customers to whom they manufacture and distribute for, Life Extension and Herbalife. Life Extension makes up the majority of revenue, and Herbalife is around 25%. These are multi-decade relationships so I'd weight the probability of losing these customers as low, but it's still a risk. INBP has been in business for over 50 years, so they have longstanding relationships with many of the biggest players in the supplement industry. **Conclusion**: It's not often you see a profitable company trading below net asset value. And not just a little below, INBP is 50% below net asset value. And probably more like 70% below net asset value if you consider their undervalued real estate. There's a lot of margin for error here, and I like aligning my investment with that of billionaires. I think it's a matter of when, and not if, the company is acquired. Disclosure: Long