The price of Greggs shares is too tasty to ignore me!

I've been looking at the actions in Baker Greggs (LSE: GRG) for a while. After a great drop in the price of Greggs shares this week after the company's results, I decided to make a movement and buy.

Why do I like the investment case

To start, let me explain what attracts me to the company.

It operates in an area with a high and resistant demand for consumers. People always need to eat and Greggs is an affordable and convenient option for many.

As the business has grown, it has built economies of scale. For example, centralized production plants mean that much of food preparation can be done in bulk into more efficient and lower cost locations than the sites on the street of the chain.

The business has been quite innovative when it comes to products. Now it has an offer that includes some unique articles. I see that how to give a competitive advantage over the rivals.

The results were good, or were they?

Looking at the two -digit percentage drop in the price of Greggs shares after the publication of annual results, it seems that they were poor. Many commentators seemed impressed with performance.

Personally, however, I saw a lot that I like.

Sales income increased by 11%, earnings before taxes increased by 8%and action diluted by action were 8%higher than a year earlier. The annual ordinary dividend per action increased by 11%, which means that the Ftse 250 Share now offers a 3.9%dividend yield.

Sales in stores administered by the company grew more slowly than sales in general (some of the sales come from the opening of new stores) and this year has begun with a modest sales growth.

However, in general, I did not think that the results undermined the investment case.

Waiting for value, then jumping

The current GREGGS Price Relationship is 12.

That is lower than it has been for a while and, in my opinion, it seems good value.

Of course, there are risks that help explain why the price of Greggs actions has been falling. His cash battery fell last year. The expensive capital expenditure requirements could continue to eat it, since the chain continues to expand its operations.

But when I look at the company, I see a solid cash generative business with a proven model and continuous growth perspectives.

I have been waiting for a while for the price of shares to reach a level that I think offers an attractive purchase opportunity. Now he has done it.

Like the billionaire investor Warren Buffett, my stock market approach is to buy participations in what I think they are large businesses at attractive prices, in order to keep them in the long term.

A price of Greggs actions has given me the opportunity to do exactly that, and I have taken advantage of it.