Sitting out front of the store that inspired the legendary “Soup Nazi” episode for the classic comic series Seinfeld is a fitting place to interview Lloyd Sugarman, the Chief Executive Officer of The Original Soupman (OTC: SOUP) for The College Investor, as it is located between New York University and Columbia University in mid-town Manhattan.
Even more fitting was Sugarman’s response when asked why college-age investors should buy shares of his company: “That’s easy: try the product. They will taste that the soup is the best and then want to buy the stock.”
Invest in What You Know
After knocking off a lobster roll with him, there is much to be said for that Peter Lynch-like advice to invest in what you know (or tastes good). Making this even better, Sugarman points out, is that the patented “SkinnySoup” from The Original SoupMan, less than 200 calories, makes college students look better. Overall the superiority of The SoupMan is that the products “are a craft soup” in the words of Sugarman.
In addition to tasting better and having less calories, products from The Original SoupMan are much healthier.
Sugarman stated that this is a, “Feature on what is both on the inside and the outside. The tetra packaging is far healthier than a can. Once you open it, the ingredients are far fresher and better for you, too. That’s what makes it a craft soup.”
Both as a something to eat and something to invest in, The Original SoupMan is ideal for a college student, Sugarman declared.
“It is far superior Ramen Noodles. It is just as easy to fix, tastes better, and is not loaded down with all that sodium. Ramen Noodles are cheaper, but cannot function as a nutritious meal replacement like anything from The Original SoupMan can and does,” he noted.
Why You Should Invest in Soupman
As an investment, The Original SoupMan is the third most recognized soup brand, behind only Campbell’s (NYSE: CPB) and Progresso from General Mills (NYSE: GIS). For an investor, there is nothing better than a company that punches above its weight class in brand recognition. That is also shown for SoupMan in that it is in 4000 supermarkets across the United States and served at schools such as City University of New York (CUNY). According to Yahoo! Finance, quarterly revenue growth is at a 24.60 percent rate. The company is also profitable.
While not on the balance sheet, The Original SoupMan has a number of other advantages that increase its appeal as an investment.
It receives tremendous marketing support from its affiliation with Seinfeld. Jason Alexander, “George” from Seinfeld, and Shaquille O’Neal, one of the all-time NBA greats, are spokespersons for the company. A fleet of Soup Mobiles are in progress to take advantage of the opportunities that are exploding in convenience foods that can be bought on the street in urban aeas. There is also a SoupMan app in development.
As a small cap, furthermore, The Original SoupMan can respond much quicker to market opportunities than either Campbell Soup or General Mills.
“This is all part of the changing nature of America,” emphasized Sugarman. “The tastes in our country have evolved. The interest in fine dining has exploded: there is a foodie culture that never existed before. For a college student looking to invest for the long term, a company like The Original SoupMan is positioned ideally to take advantage of that trend.”
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