Is Inventure Foods Inc (SNAK) A Good Stock To Buy?

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Consequently, specific money managers have jumped into Inventure Foods Inc (NASDAQ:SNAK) headfirst. PEAK6 Capital Management, led by Matthew Hulsizer, created the most outsized call position in Inventure Foods Inc (NASDAQ:SNAK). PEAK6 Capital Management had $1.2 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.2 million position during the quarter.

Let’s now review hedge fund activity in other stocks similar to Inventure Foods Inc (NASDAQ:SNAK). We will take a look at Hurco Companies, Inc. (NASDAQ:HURC), Advent Claymore Convertible Securities and Income Fund of Beneficial Interest (NYSE:AGC), Pendrell Corporation – Class A (NASDAQ:PCO), and FreightCar America, Inc. (NASDAQ:RAIL). This group of stocks’ market valuations resemble SNAK’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HURC 5 33396 -2
AGC 4 27213 4
PCO 8 43623 -1
RAIL 11 18012 -2

As you can see these stocks had an average of seven funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $19 million in SNAK’s case. FreightCar America, Inc. (NASDAQ:RAIL) is the most popular stock in this table. On the other hand Advent Claymore Convertible Securities and Income Fund of Beneficial Interest (NYSE:AGC) is the least popular one with only four bullish hedge fund positions. Inventure Foods Inc (NASDAQ:SNAK) is not the least popular stock in this group, but hedge fund interest is close to average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RAIL might be a better candidate to consider taking a long position in.

Disclosure: none

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