At the index level, small-cap performance has been unremarkable (though stable) for a while. But under the hood, there continue to be plenty of performing names, and we’ve been fortunate enough to be in a number of them. Our newest position, Mama’s Creations Inc. (MAMA), continues to act well, observes Tyler Laundon, editor of Cabot Small-Cap Confidential.
I’m looking forward to new customer additions (expected, not confirmed yet) as we march through the summer. MAMA is a pure-play deli prepared food vendor that sits right at the intersection of two big-picture trends: Consumers that are time and budget constrained, and grocery deli departments that are adapting to meet a tidal wave of demand for high-quality, grab-and-go prepared meals.
Mama's Creations Inc. (MAMA)
The company is doing all the things we want to see out of a small, growth-oriented player, namely introducing new products, cross-selling, going after big clients, and looking to add a little boost through M&A. The stock was added to the Russell 2000 Index at the beginning of the month.
On the macro front, the odds of a September rate cut have been rising (Jerome Powell’s recent comments have not shut that trend down, which is a positive) with the CPI inflation report hopefully paving the way for the Fed to finally ease a little (two cuts now expected this year). We also have the beginning of the Q2 earnings season firing up, with financials the first group to report.
Recommended Action: Buy MAMA.
