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Stock impact report

HF Foods Group May Sell Stock To Pay For An Acquisition [Seeking Alpha]

HF Foods Group Inc. (HFFG) 
Company Research Source: Seeking Alpha
HFFG is restructuring sales operations, expanding warehouse capacity, and leveraging its niche in Asian restaurant distribution for organic growth and margin improvement. Dilution remains the main risk; however, past stock issuances funded accretive mergers, and HFFG has strong cash flow for smaller projects without major dilution. With a target price of $3.35 (50% upside), HFFG is a buy for investors comfortable with dilution uncertainty and seeking undervalued growth potential. Yaroslav Astakhov/iStock via Getty Images My investment thesis for HF Foods Group ( HFFG ) is that it's undervalued because investors are already pricing in the dilution from a potential stock sale, but not considering what the company is likely to This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it exp Show less Read more
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