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SeeThruEquity Initiates Research Coverage on Mamamancini's Holdings, Inc. with a Target Price of $4.00
[October 20, 2014]

SeeThruEquity Initiates Research Coverage on Mamamancini's Holdings, Inc. with a Target Price of $4.00


(ACCESSWIRE (Canada) Via Acquire Media NewsEdge) Category: Baystreet Newswire Company: SeeThruEquity ID: 421741 Date: Monday, October 20, 2014 Ticker: OTC:BB:MMMB New York, NY / ACCESSWIRE / October 20, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on Mamamancini’s Holdings, Inc. (OTCQB: MMMB), a manufacturer and distributor of a line of all natural, beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian products.



"Mamamancini’s products have found strong acceptance among consumers due to the old world traditional family recipes which are all natural and contain no added preservatives or artificial flavors. The products are sold across various supermarkets and mass market retailers including Costco and Walmart and have a distribution reach of 12,500 stores and 42,000 shelf placements. The company reported revenues of $8.7mn during 2013. The company adopted a multi pronged aggressive growth strategy, which includes (a) new product introductions (b) expansion of its retail store penetration (c) increase in shelf placements and (d) media campaigns to increase brand awareness, to achieve its target of becoming a mega brand. We believe these efforts combined with the market potential will lead to exponential sales growth in the near term which coupled with the new automated manufacturing units that are expected to lower labor cost and expand gross margins to 36% (from the current 30%) enabling the company achieve EBITDA breakeven in FY16E and strong cash flow generation beyond that," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a target price of $4.00 per share." Additional investment highlights are as follows: Strong Brand - All-Natural, original family Italian Recipes Mamamancini’s manufactures and distributes a line of old world, all natural Italian recipes primarily various meatballs in slow cooked Italian sauces, pastas and related products. The recipes contain minimum ingredients and are all-natural as approved by the USDA (i.e. no artificial ingredients, coloring additives or chemical preservatives, minimally processed) which is a key differentiator and advantage vis-à-vis competition. The traditional family recipes and the MamaMancini’s brand are well accepted by consumers due to its heritage, great taste and ease of preparation and use. Mamamancini’s products are sold across various supermarkets and mass market retailers including Costco, Walmart, Kroger, Rouses, Lunds & Byerly’s, SHOPPERS etc. As of Oct 16, the company’s products were stocked at 12,500 retail locations with an average of approximately 3.40 SKUs per location totaling 42,000 product placements on supermarket shelves.

Aggressive Growth Strategies in Place Mamamancini’s has adopted a multi pronged aggressive growth strategy to achieve its target of becoming a mega brand. The company is investing significantly on increasing its retail distribution, especially with big-box and club retailers, where there is significant potential for increasing its current penetration of 35%. Mamamancini’s products are currently stocked only at ~12,500 locations (3QFY15E) of the estimated 32,000 large supermarket and mass market stores in the U.S., indicating an additional opportunity of 20,000 stores. It is also engaged in expanding its shelf placements to 50,000 by the end of 2014 and reach 160,000 as a near term goal by expanding its current 3.50 SKUs per location to a target of 5 in the short-term and 10 in the long term. The company is also exploring new opportunities viz. stocking products in fresh deli within grocery stores which is witnessing higher growth and the opportunity for restaurants to brand their products under MamaMancini’s. There is significant, ongoing product expansion during 2014 (gluten free meatballs, antibiotic-free meatballs, Mac ‘n Mama’s, etc.) with many new introductions completed by 2QFY15. The company has planned and is executing an aggressive marketing campaign to promote its brand awareness with programs spread across Radio, Social Media, Billboards, Consumer public relations campaigns and targeted coupons.


Well positioned in a High Growth Category We believe the company’s products are well positioned and offer superior value to competition in the specialty packaged foods category that witnessed strong growth of over 18% between 2011 and 2013. The significant investments being made by the company in its sales efforts will likely yield exponential top-line growth over the next two years driven by growing shelf placements, increased penetration into its existing clientele’s retail locations and new product introductions. A new technology upgrade in its manufacturing facilities will enhance gross margins and we expect EBITDA break-even by fiscal year ending in Jan 2016. The company has recently secured a $3.1 million line of credit to support its immediate growth plans.

The report is available here: MMMB Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.

Please review important disclosures on our website at www.seethruequity.com.

About Mamamancini’s Holdings, Inc.

MamaMancini's is a manufacturer and distributor of a line of all natural, beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Costco, Publix, Shop Rite, Price Chopper, A&P, Waldbaums, Food Emporium, Whole Foods, Shaw's Supermarkets, Kings, Key Foods, Giant Eagle, Stop-n-Shop, Giant Stores, Food Town, Kroger, Winn Dixie, Albertsons, Shoppers, Wal-Mart, Marsh's Supermarkets, Bashas, Bi-Lo, Central Markets, Weis Markets, Ingles, and The Fresh Market.

For more information, visit www.mamamancinis.com.

About SeeThruEquity SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact: Ajay Tandon SeeThruEquity (646) 495-0939 SOURCE: SeeThruEquity © 1998 - 2014 Baystreet.ca Media Corp. All rights reserved.

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