It's been a pretty dismal summer for investors in ConAgra Foods (NYSE: CAG ) , with the stock currently down 18% from its high at the start of August. Essentially, the market got a little bit too excited by the company's purchase of private-label food manufacturer Ralcorp.
Furthermore, the stock price reflected a significant amount of optimism over the company's prospects within a difficult economy for food retailers. Unfortunately, ConAgra managed to miss estimates for the first quarter in FY ending 05/2014, and the market punished the stock accordingly. Is now the time to take advantage of this?
ConAgra disappoints
First, in order to put the following discussion into context, here's a look at each segment's operating income for the quarter.
source: company accounts
In a previous article, I discussed the three big risks with the stock, and it's time to assess them again. In its recently reported first quarter, ConAgra disappointed with the first risk factor by failing to generate organic volume growth in its consumer-foods division.
Top Freight Companies To Buy For 2015: Creative Edge Nutrition Inc (FITX)
Creative Edge Nutrition Inc. (CENergy), formerly Laufer Bridge Enterprises Inc, incorporated on January 10, 2008, is engaged in the development, marketing and sales of nutraceuticals and health supplements. The Company�� product categories include lean, energy, essentials, mass, vitamins and apparel. In July 2012, it acquired Innovative Fulfillment Corp. In August 2012, the Company acquired SCD Enterprises, LLC. In September 2012, the Company acquired A-Z-Nutrition.com. In September 2012, the Company acquired Sci-Fit and Nature's Science product brands. In March 2013, it announced its entrance into the Medical Marijuana Sector through Hemp Protein Powder, Naturals Line, Hemp-plex and Chia-plex. In May 2013, Creative Edge Nutrition Inc acquired Canadian Nutrition Super Stores.
Metabolic Xtreme utilizes the technology and advancement in weight loss technology. Cenergy�� Amino Acid Complex is the supplement for athletes, bodybuilders and anyone who's trying to live a healthy lifestyle.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks CD International Enterprises Inc (OTCMKTS: CDII), Creative Edge Nutrition Inc (OTCMKTS: FITX) and Metrospaces Inc (OTCMKTS: MSPC) have all been the subject of recent as well as past paid for stock promotions. Of course, there is nothing wrong with properly disclosed stock promotions or investor awareness campaigns, but they can and do often backfire on unwary investors and traders alike. With that in mind, will investors and traders come out winners with these small caps or should they just be left to the promoters? Here is a quick reality check:
Hot Food Stocks To Buy Right Now: Safeway Inc.(SWY)
Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. The company operates stores that provide an array of grocery items, food, and general merchandise, as well as features specialty departments, such as bakery, delicatessen, floral, and pharmacy, as well as coffee shops and fuel centers. It also offers SELECT line of products that include baked goods, sparkling ciders and lemonades, salsas, whole bean coffees, frozen pizzas and entrees, and fresh and dry pastas and sauces, as well as an array of ice creams, hors d'oeuvres, and desserts; O ORGANICS line, which comprises milk, chicken, salads, juices, and entrees; Lucerne line of dairy products; Eating Right line of better-for-you products; Bright Green line of home care products; Total Pet Care line of pet foods and pet care products; and Value Red line of value-priced paper goods. As of December 31, 2009, Safeway operated approximately 1,725 stores in California, Oregon, Wash ington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area, and the Mid-Atlantic region, as well as British Columbia, Alberta and Manitoba/Saskatchewan. In addition, the company owns and operates GroceryWorks.com Operating Company, LLC, an online grocery channel, doing business under the names Safeway.com, Vons.com, and Genuardis.com; and Blackhawk Network Holdings, Inc., which provides third-party gift cards, prepaid cards, telecom cards, and sports and entertainment cards to North American retailers for sale to retail customers. Additionally, it engages in gift card businesses in the United Kingdom, France, Mexico, and Australia. Further, the company, through a 49% ownership interest in Casa Ley, S.A. de C.V. operates 156 food and general merchandise stores in Western Mexico. The company was formerly known as Safeway Stores, Incorporated and changed its name to Safeway Inc. in February 1990. Safeway was founded in 1915 and is based in Pleasanton, California. Advisors' Opinion:
- [By Avi Salzman]
The Wall Street Journal is reporting that private equity firm Cerberus has agreed to buy grocery chain Safeway (SWY) for more than $9 billion, subject to board approval. Safeway, the second-largest supermarket chain, has sold several assets in the past two years, including its Canadian operations. The Cerberus deal could be announced after the market closes.
Hot Food Stocks To Buy Right Now: Hillshire Brands Co (HSH)
The Hillshire Brands Company, incorporated on September 4, 1941, is a manufacturer and marketer of food products. The Company�� portfolio includes brands, such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. The Company operates in two segments: Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Foodservice/other sells a variety of meat and bakery products to foodservice customers in North America. On February 4, 2013, the Company completed the sale of its Australian bakery business.
Retail
Products in the retail segments include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The Company�� brands include Jimmy Dean, Ball Park, Hillshire Farm, State Fair and Sara Lee, as well as artisanal brands Aidells and Gallo Salame. The sales of the Retail business are generated in the United States Sales are made in the retail channel to supermarkets, warehouse clubs and national chains. Retail�� business accounted for 74% of the Company�� sales during the fiscal year ended June 29, 2013 (fiscal 2013).
Foodservice/Other
Products in the foodservice/other segment include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, deli and luncheon meats, ham, beef and turkey, as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. Sales are made in the foodservice channel to distributors, restaurants, hospitals and other large institutions. Foodservice/Other�� business accounted for 26% of the Company�� sales in fiscal 2013.
Advisors' Opinion:- [By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]
Among the companies with shares expected to actively trade in Tuesday’s session are Hillshire Brands Co.(HSH), InterDigital Inc.(IDCC) and Krispy Kreme Doughnuts Inc.(KKD)
- [By Vera Yuan]
Hillshire Brands Co. (HSH) (0.9%) (HSH - $62.30 - NYSE), formerly the Sara Lee Corp., completed the spin-off of D.E Master Blenders 1753 and paid a $3 cash dividend to shareholders on June 28, 2012. As a result, shareholders received one share of the North American meat company, renamed Hillshire Brands (HSH), which subsequently underwent a reverse split of 1-for-5. Hillshire Brands is a concentrated meat and bakery business in the U.S., generating an estimated $4 billion of revenue. It is the leading player in categories such as protein breakfast, breakfast sausages, and hot dogs under the Jimmy Dean, Hillshire Farm, and Ball Park brands. On July 2, 2014, following a bidding war between Tyson Foods and Pilgrim�� Pride and the termination of the Hillshire agreement to acquire Pinnacle Foods, which was previously announced on May 12, 2014, Hillshire announced it agreed to be acquired by Tyson Foods for $63 per share in cash. The transaction is expected to be completed by the end of September 2014.From Mario Gabelli (Trades, Portfolio)�� The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.Also check out: Mario Gabelli Undervalued Stocks Mario Gabelli Top Growth Companies Mario Gabelli High Yield stocks, and Stocks that Mario Gabelli keeps buying Currently 0.00/512345
Rating: 0.0/5 (0 votes)
- [By Ben Levisohn]
Stocks rose today as jobless despite a weak GDP reading as jobless claims fell and merger mania gripped the food stocks. Shares of Tyson Foods (TSN), Hillshire Brands (HSH),�Merck (MRK), Biogen Idec (BIIB), and SunEdison (SUNE) helped lead the market higher.
- [By Jake L'Ecuyer]
Top Headline
Hillshire Brands Co (NYSE: HSH) announced its plans to buy Pinnacle Foods (NYSE: PF) for around $6.6 billion including debt. Hillshire will offer $18.00 in cash and 0.50 shares of its common stock for each Pinnacle share.
Hot Food Stocks To Buy Right Now: MicroFinancial Incorporated(MFI)
Microfinancial Incorporated, through its subsidiaries, operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. The company provides financing alternatives, and leases and rents commercial equipment to start-up and established businesses for use in their daily operations. It leases water filtration systems, food service equipment, security equipment, point-of-sale cash registers, salon equipment, health care and fitness equipment, and automotive equipment. The company primarily sources its originations through a network of independent equipment vendors, sales organizations, and other dealer-based origination networks. Microfinancial Incorporated was founded in 1987 and is headquartered in Woburn, Massachusetts.
Advisors' Opinion:- [By Magic Diligence]
One stock that has been in the official Magic Formula (MFI) screen for the past month or so has piqued my interest: Kraft (KRFT).
The MFI screens, particularly the $50 million screen, are usually reserved for deep value stocks. Usually you find stocks in here suffering serious adverse business developments (LQDT, NSR, etc.), operate in out-of-favor industries (APOL, STRA, etc.), have volatile and difficult-to-predict future prospects (PDLI comes to mind), or are just simply cheap quantitatively (CSCO, COH, et.al.).
- [By Eric Lam]
Alacer Gold Corp. and Iamgold Corp. rallied at least 5.9 percent as the metal traded at its highest in 11 weeks. Maple Leaf Foods Inc. (MFI) jumped 7.8 percent as it agreed to sell a unit for C$645 million ($614 million). Penn West Petroleum (PWT) Ltd. added 1.7 percent after cutting 25 percent of its workforce to reduce costs.
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