2,000% Gain in only 7 years! My Dad’s GREAT Stock Pick!

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Good day subscribers thank you so much for joining me today i am jeremy and this is a financial education channel and today we’re talking about a stock that my dad told me about a long time ago that’s gone up 2,000 percent in the past seven years you heard that right 2,000 percent gain in seven years so we’re gonna go ahead and look back at this guy’s if you enjoy

This video today go ahead and hit that thumbs up button let’s get into this so we’re gonna go way back in the day to 2009 when little jeremy was learning about investing and just starting to dip his toes into investing and starting to buy companies and whatnot my father actually knew this because i had all these annual reports being sent to me this was back when

Annual reports actually got sent to you and you didn’t just look at them online so i was learning about investing i was very interested i was starting to invest a bit and my dad he actually came to me with this stock and he was online and he showed me is like this stock looks so great you know i believe in this company so much it was called middle b this stock has

Come 2,000 percent since he told me look at this chart here guys back when he was telling me about this this was in 2009 early 2009 when i was first starting to learn about investing who’s that seven dollars a share seven dollars you know seven eight bucks to share pretty much the entire year around that range that’s when he was telling me about it and i actually

Looked into it later in the year more toward a little early 2010 and i was like i’m not that interested in it look where it’s at now hundred and forty dollars a share so it’s gone up to thousand percent in just seven years seven years 2000 percent so what is middle b what does a company all about well i really you know he told me about that day but i really looked

Into it in depth in and it was about rate after you know 2010 and starting the 2009 in your report came out that recapped the 2009 year middle b corporation is a global leader in food service equipment industry this come the company develops manufactures markets and services a broad line of equipment you for cooking and food preparation and commercial restaurants

Institutional kitchens and food operate processing operations throughout the world so basically they got the majority of their revenue from selling equipment to restaurants that either needed upgraded equipment wanted to upgrade equipment or for new restaurants who needed equipment things like that they also sold food equipment to hospitals things like that that

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Is where they got the lion’s share of their income from so let’s see what he saw in this company so he saw a company that had grown that had doubled revenue in just a short five years from 2005 you look all the way in the right hand side there they did 316 million dollars in net sales 2009 they did 646 net gross profit in 2005 they did 121 million gross profit in

2009 they did over 250 million so once again they doubled gross profit now the most impressive thing about this is not actually that gross the most impressive thing is the results they got in that year 2009 2009 if you guys remember correctly that was the worst recession of my life it was it was a great recession it’s a worst recession that’s ever happened during

The course of my life i’m only 27 years old but that was by far the worst companies were looking to hold back money the company’s only wanted to spend money if they absolutely had to in new restaurant openings came to a very very much’ stole unless it was a super growing brand you know companies just pulled back because it was a patent recession they didn’t want

To keep building at that time they need to preserve capital because everybody’s profits were down everybody’s revenue was down you need to preserve capital well mittal be look at this company they still did phenomenal net sales and the gross profit to still come in and be profitable is amazing and actually they beat their gross profit in 2008 which is absolutely

Amazing to me absolutely amazing when you can be profitable and extremely profitable as they were actually a record years for his gross profit goes when you can do that in the middle of a recession a horrible recession that means you are running your business very very very well you were running your business very well if you can manage to put up the best results

You’ve ever had in a great recession like that absolutely amazing so that’s what he saw in the company you know he knew that you know sales would even get much stronger as we came out of that recession sure enough they had so this is how the company kind of described the company a little bit or excuse me the the management described the company this is a ceo talk

In 2010 and beyond working in our favor is the fact that eating outside the home will continue regardless of the economy the economy was a talk of back then emerging markets are in the infancy in terms of restaurant openings and middle b is well positioned with our international sales structure we have a unique business model that is extremely difficult to imitate

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While the environment remains challenging we have made it a priority to stay close to our customers and maintain our culture of product innovation to further penetrate the market we expanded both our domestic and international sales teams during a time when companies are cutting we are also we are also investing in r&d and have maintained a robust robust pipeline

Of new products these investments will pay dividends in the future and oh my gosh have they paid dividends in the future as i’m gonna take you guys through here in just a minute on what their sales are nowadays what their gross profit is nowadays and you will see why this stock has gone up so massively as it has over the past seven years absolutely phenomenal stuff

So let’s look at the results now last year they did 1.8 billion dollars in net sales and seven hundred and six million dollars in gross profit in this compares guys this compares to in 2009 they were doing 646 million in net sales and 250 million dollars in gross profit so the hip absolutely knocked the ball out of the park here guys net sales gross profit has just

Grown at amazing rates over the last seven years and this is why the collor stock has caught up two thousand percent guys we can see very clearly here that this is a well-run company and they’re just a grow biess and part of what middle d does honestly they acquire a lot of companies they acquire a lot of a lot of restaurant you know food equipment manufacturers

They bring those in and creates less competition for them and then they can actually make those companies more profitable because they can source parts of easier they can you know they have much more leverage to you know get steel for a certain price or get this part of this product for a certain price all those kinds of things and they can actually raise a price

They’re selling to their customers because they have less competition once you have less competition in the market you can actually raise prices on the other customers because you don’t have this person fighting because now you own this person so that is another great way mill b has grown into the giant beast it is today there’s a look at these most current results

Here for the quarter they just reported about a month ago net sales increased twenty seven point nine percent compared to the prior year third quarter absolutely amazing then we go out down here a bit now we look at gross profit in the third quarter increased to two hundred and thirty 1.7 million from one hundred and seventy seven point two million reflecting the


Impact of increased sales from acquisitions like we just talked about the gross margin rate increased to 40 point four percent from thirty nine point nine percent improved margins reflect efficiency gains in including benefits from integration initiatives guys this is exactly what we were just talking about the acquisition strategy behind them is genius you know

Buy out a company then you have less competition in the market and then you have more scale you can go ahead and throw behind that company you can get parts and all these things for a lot cheaper you can cut down on sales people because now you have you only need one person selling two different products versus two people selling one product this is how this company

Has grown into a giant beast and that’s just continue to deliver great growth year over yours really through acquisitions guys it really is now if you’re wondering is this still a good investment now a days let’s go ahead and just look at the middle d stock right now so right now it’s a four one hundred forty dollars and ninety seven cents that is right near its

52-week high so its 52-week low with $79 one hundred 41 dollars in 29 cents is 52-week high so is right at that 52 week high and they have a p/e ratio of just under 32 or market cap of 8 billion so if i was looking at this company i would probably say you know it’s not for me because the p/e is so high it’s near the 52-week high all these kinds of things but this

Is the same thing i said in 2009 when i was like oh i don’t want to be invested in because it had this it had a high p/e even back then and then have it you know so i’m just like it’s the same issue i had back then with middle b which is why i still probably won’t invest in it but despite me not investing in it it’s just been a beast so this proves to you guys you

Know some not all companies are for everybody but i wish i’d listened to him and invest in this one because 2,000 percent in seven years is absolutely ridiculous guys i really hope you enjoyed this story today hearing about my dad’s phenomenal stock pick that has just been a beast over the last seven years and if you’re watching this video today and you have not

Subscribed yet you may want to talk about personal finance on the channel talk about entrepreneurship i’m an entrepreneur and we also talk the stock market the most on this channel thank you for watching guys and have a great day

Transcribed from video
2,000% Gain in only 7 years! My Dad's GREAT Stock Pick! By Financial Education

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