FARM: Arbitrage Opportunity ??

if you believe there exists a potential value catch up with peers and long overdue profits based on growing diversified customer revenues of 451.67 million. FARM did generate CFFO of 34,449,000  and FCF of 10,245,000  for the prior 12 months. This was based on the reported accounting loss of (52,975,000).

I don't want to make too much of this but value guru Michael Price reported during Q1 2011 the addition of 27,260 shares of FARM to increase his stake to 259,209. The average price during this period  based on the daily closing prices from January 1 to March 31 2011 was 13.06  also including a regular quarterly dividend. FARM paid out 6,490,00 in dividends in during the prior 12 month period . Farmer Bros. has paid a dividend in every year since 1953. The modest positive insider activity over 2010 and 2011 doesn't hurt .

The clean capital structure, high insider ownership (57%), 100 year history, real estate, consistent dividend, 47% below 52 week high,  and ratios substantially below peers and market makes FARM a non glamorous stock idea with a margin of safety.

Long FARM as part of a highly diversified portfolio