Weekly Update Monday, March 13, 2017 Strong February 2017 Jobs Couldn’t Continue Weekly Gains. Mary Burke Partner Despite news of a solid jobs report for February 2017, the major U.S. stock 312.348.7081 [email protected] benchmarks snapped their multi-week gains streak. Oil prices also experienced a downturn with the price concluding below $50 a barrel for William Whipple WTI crude. Partner 312.348.7076 The Dow Jones Industrial Average decreased 0.5% on the week, [email protected] finishing at 20,903. Philip Zoloto The S&P 500 fell 0.4% on the week, closing at 2,373. Partner 312.348.7077 The NASDAQ Composite declined 0.2% on the week, finishing at [email protected] 5,862. Lakeshore Food Advisors, LLC Yield on the 10-year Treasury rose 9 basis points on the week, ending at 20 North Wacker Drive 2.58%. Suite 1701 Chicago, IL 60606 Crude oil declined 8.1% on the week, ending at $49.03 per barrel. Corn futures fell 4.3% on the week, ending at $3.64 per bushel. NASDAQ Highs: Central Garden & Pet Company, National Beverage Corp., Panera Bread Company Lows: Calavo Growers, Inc., Inventure Foods, Inc. NYSE Highs: None Lows: Natural Grocers by Vitamin Cottage, Inc., SUPERVALU, Inc. Featured Stocks of the Week: Dean Foods Co. (NYSE: DF) 10-year History Flowers Foods, Inc. (NYSE: FLO) 10-year History 120 30 100 25 80 20 60 15 40 10 20 5 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1 The Lakeshore Food Chain Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 3/10/17 3/3/17 High Low 2016 2015 P/E Revenue EBITDA EBITDA Dow Jones Industrial Average 20,903 (0.5%) 21,116 17,140 5.8% 20.0% 19.8x S&P 500 2,373 (0.4%) 2,396 2,001 6.0% 16.1% 18.3 NASDAQ Composite Index 5,862 (0.2%) 5,904 4,594 8.9% 17.1% 25.3 Sector Average: 6.9% 17.7% AGRICULTURAL LAND HOLDINGS Farmland Partners Inc. $10.61 (3.5%) $11.98 $10.00 (4.9%) (3.3%) 31.4x 25.07x 39.8x 15.8x Gladstone Land Corporation 11.00 (10.1%) 12.89 8.80 (2.1%) 27.2% 110.0 21.51 30.2 19.1 Limoneira Company 17.88 (1.9%) 21.78 13.18 (16.9%) 19.7% 44.0 3.21 23.6 6.3 Sector Average: (8.0%) 14.5% 37.7x 16.59x 31.2x 13.7x 20902.98 INPUTS * Agrium Inc. $131.17 2.8% $146.99 $104.70 (2.8%) 6.1% 18.1x 1.32x 11.1x 3.3x American Vanguard Corporation 15.05 (6.2%) 20.00 12.60 (21.4%) 7.4% 24.2 1.52 11.4 1.0 CF Industries Holdings, Inc. 29.42 (4.9%) 37.17 20.77 (6.5%) (27.9%) 77.3 3.97 13.4 4.7 DuPont 80.86 1.6% 80.99 61.12 10.2% 21.4% 21.9 2.96 14.1 1.7 FMC Corporation 60.05 1.3% 62.84 36.72 6.2% 53.5% 17.7 3.02 13.9 2.7 Intrepid Potash, Inc. 1.65 (13.2%) 3.04 0.85 (20.7%) (44.1%) NM 1.59 NM NM Monsanto Company 114.06 (0.8%) 116.04 84.79 8.4% 15.8% 23.9 4.05 14.1 2.1 The Mosaic Company 29.19 (3.4%) 34.36 22.77 (0.5%) 5.8% 29.6 1.87 11.3 3.2 * Potash Corporation of Saskatchewan Inc. 23.49 2.6% 26.62 19.93 (3.3%) (0.9%) 31.8 4.91 14.4 3.7 S&W Seed Company 4.40 0.0% 5.35 4.06 (4.3%) 4.3% 50.3 1.16 18.4 NM The Scotts Miracle-Gro Company 91.83 0.4% 98.82 65.80 (3.9%) 42.4% 22.6 2.47 14.6 NM * Syngenta AG 442.20 0.3% 444.60 360.50 9.9% 12.7% NA 3.29 16.0 1.4 Zoetis Inc. 53.34 (0.1%) 56.50 39.52 (0.4%) 11.3% 23.1 6.13 17.7 2.6 Sector Average: (2.2%) 8.3% 30.9x 2.94x 14.2x 2.6x AGRICULTURAL EQUIPMENT * Ag Growth International Inc. $52.11 (1.5%) $57.69 $24.68 (0.8%) 56.7% 18.5x 2.09x 15.2x 4.8x AGCO Corporation 59.51 (3.1%) 64.90 44.68 2.9% 31.1% 23.8 0.82 9.7 3.0 Art's-Way Manufacturing Co., Inc. 3.75 (7.4%) 4.70 2.50 10.3% 21.0% NA 0.97 73.0 22.7 * Buhler Industries Inc. 4.55 (2.2%) 6.00 4.40 2.5% (16.4%) NA 0.50 NM NM CNH Industrial N.V. 9.64 1.3% 9.75 6.03 10.9% 40.9% 24.1 1.43 13.9 10.6 Deere & Company 109.92 (0.8%) 112.18 74.91 6.7% 44.1% 21.9 2.52 17.2 8.9 Lindsay Corporation 80.05 (0.8%) 89.98 65.78 7.3% 10.6% 33.3 1.72 20.6 2.8 Titan Machinery Inc. 13.51 (6.2%) 15.93 8.68 (7.3%) 23.6% NM 0.60 33.7 23.0 Sector Average: 4.1% 26.5% 24.3x 1.33x 18.4x 8.9x AGRIBUSINESS AGT Food and Ingredients Inc. $32.39 (3.6%) $42.16 $31.56 (11.6%) (4.7%) 14.3x 0.67x 10.8x 4.4x The Andersons, Inc. 37.85 (2.8%) 44.90 25.78 (15.3%) 19.7% 16.5 0.38 13.2 4.7 Archer-Daniels-Midland Company 45.04 (0.4%) 47.88 34.55 (1.3%) 22.8% 15.7 0.51 11.2 2.7 Bunge Limited 81.12 (0.6%) 82.66 53.50 12.3% 18.8% 13.2 0.37 9.5 2.9 Darling Ingredients Inc. 14.15 (0.8%) 15.93 11.51 9.6% 34.5% 20.8 1.20 8.0 4.0 * Gruma, S.A.B. de C.V. 260.33 (2.6%) 288.99 240.38 (1.1%) 7.7% 18.0 1.83 11.4 1.5 Ingredion Incorporated 120.41 (1.2%) 140.00 104.19 (3.6%) 25.6% 15.8 1.77 9.9 1.9 Landec Corporation 12.60 (1.9%) 15.50 9.65 (8.7%) 6.5% 18.7 0.75 15.2 2.1 * Olam International Limited 1.98 (1.3%) 2.17 1.58 0.3% 8.5% 16.5 0.83 14.4 11.7 Omega Protein Corporation 19.50 1.6% 26.99 15.90 (22.2%) (12.2%) 11.9 1.03 4.2 0.0 Sector Average: (4.2%) 12.7% 16.1x 0.93x 10.8x 3.6x DIVERSIFIED FOODS B&G Foods, Inc. $42.05 (0.4%) $52.84 $31.81 (4.0%) 20.1% 19.1x 3.23x 14.0x 5.4x Campbell Soup Company 59.19 (0.6%) 67.89 52.59 (2.1%) 12.6% 18.9 2.67 15.5 2.6 Conagra Brands, Inc. 40.91 (0.6%) 48.86 33.61 3.4% (3.0%) 22.6 1.77 10.2 1.9 General Mills, Inc. 60.57 (0.3%) 72.95 58.70 (1.9%) 5.0% 18.7 2.82 12.9 2.8 The Hain Celestial Group, Inc. 35.73 1.0% 56.99 32.87 (8.5%) (11.5%) 17.6 1.55 12.1 2.5 The J. M. Smucker Company 139.49 (0.7%) 157.31 122.05 8.9% 13.1% 17.7 2.86 12.8 3.1 Kellogg Company 74.19 (0.4%) 87.16 70.74 0.7% 2.7% 18.8 2.57 14.9 3.5 The Kraft Heinz Company 91.51 0.0% 97.77 75.86 4.8% 25.8% 24.2 5.28 16.3 3.8 Lancaster Colony Corporation 131.39 (1.4%) 149.30 103.13 (7.1%) 13.8% 26.7 2.93 15.5 0.0 Mondelez International, Inc. 43.85 0.3% 46.40 39.21 (1.1%) (2.2%) 20.9 3.18 18.1 4.1 * Nestlé S.A. 75.45 1.1% 80.05 67.00 3.3% 1.2% 21.4 2.78 13.8 1.4 Pinnacle Foods Inc. 57.85 0.1% 58.62 40.43 8.2% 36.2% 22.4 3.09 15.0 4.9 Post Holdings, Inc. 84.08 (0.9%) 89.00 67.29 4.6% 36.3% 30.1 1.84 10.5 5.4 SunOpta Inc. 9.82 7.2% 10.09 4.14 2.6% 3.8% 84.1 0.93 16.2 5.6 Treehouse Foods, Inc. 85.50 (0.9%) 104.53 62.64 18.4% 9.0% 23.5 1.23 12.3 4.5 * Unilever N.V. 45.88 2.9% 46.04 36.22 17.3% 14.4% 22.3 2.73 16.0 1.9 Sector Average: 3.0% 11.1% 25.6x 2.59x 14.1x 3.5x 2 Price Price as Compared to Enterprise Value to Total Debt Price Compared to 52-Week Range YE: Forward LTM: to LTM Company Name 3/10/17 3/3/17 High Low 2016 2015 P/E Revenue EBITDA EBITDA ETHANOL Green Plains Inc.