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Posted
Sep 08 2009, 04:05 PM
by
Louis Navellier
Rating:
Money Blog: Top Stocks Blog - MSN Money
On Monday, Kraft Foods (KFT) stunned the investing world by offering to merge with Cadbury PLC (CBY) for $16.7 billion. That represented a 42% premium to Cadbury’s stock price. But what was even more stunning is that Cadbury’s board turned the offer down. They called Kraft’s bid “fundamentally inadequate.” Ouch!
If most people were offered a 42% premium on something—anything—they’d take it, so I have to credit Cadbury’s board for showing some moxie. At least they believe in their company.
Apparently, they’re not alone. Shares of Cadbury have surged on the news that someone else will make a bid for them. This is typical Wall Street—if one company is an interested buyer, then they all must be. Bing: Kraft and Cadbury
So what’s going to happen now? I fully expect Kraft will come back to Cadbury with a sweetened offer. If I were Cadbury, I wouldn’t try to be too cute with potential suitors. Some analysts think the company could fetch as much as $21 billion, which is a lot of chocolate eggs. I currently rate both Kraft and Cadbury as sells, so almost any offer is worth taking.
Wall Street is a big playing field, so lots of corporate boards are watching this action and some are certainly interested in Cadbury
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Posted
Jun 26 2009, 11:29 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Retailers, reacting to the ongoing structural shift away from excessive consumerism, are beginning to choose quality over quantity.
Finally.
This morning's Wall Street Journal highlights efforts by stores like Target (TGT), Walgreens (WAG), and Wal-Mart (WMT) to reduce their product offerings, limit shelf clutter, and generally simplify the consumer's shopping experiences. Suppliers like ConAgra (CAG) and Clorox (CLX) are also trying to get ahead of the curve, and are reducing the variety of their offerings.
As shoppers become more selective, confronting a dizzying array of salad-dressing options inspires many to simply throw up their hands and go with a brand they know. As one customer told the Journal: "There are too many choices. I just went with Kraft (KFT), because I know Kraft."
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Posted
Jun 16 2009, 09:43 AM
by
Minyanville
Money Blog: Top Stocks Blog - MSN Money
Here’s what I’m seeing today:
Best Buy (BBY):
The electronics chain that clearly needs no introduction released its first-quarter results before the bell this morning.
Profit was down 15%, but excluding items, Best Buy earned 42 cents per share, which was notably better than the 34 cents analysts had been figuring on.
There was a 6.2% comp-store decline, and the better-than expected earnings may have been factored into the share price; the stock is down today. That said, there are 3 positives that make it worth checking out
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Posted
May 21 2009, 03:42 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
It has begun to dawn on more and more large companies that high-priced goods are costing them sales during the recession. Maybe the only way to hold onto customers is to offer some products at remarkably low prices, prices as low as $1.
The benefit of dollar items is that it keeps consumers coming back to brands which they have bought for decades but may no longer be able to afford. It also keep sales coming, even if those sales are very modest.
The $1 meal from McDonald’s (MCD) has been part of the company’s marketing for some time. Starbucks (SBUX) now offers instant coffee for about $1. Wal-Mart (WMT) announced during its last earnings call that it would have entire aisles in its stores with nothing but products priced at or under $1.
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Posted
Apr 28 2009, 01:56 PM
by
Louis Navellier
Rating:
Money Blog: Top Stocks Blog - MSN Money
Conventional wisdom says that during a recession people will reduce their dining out frequency and opt to eat and entertain at home. Conventional wisdom is often not very prescient. As I said when I revealed my 5 Hot Stocks in Ice-Cold Sectors, there are always opportunities to profit if you know where to look. While stocks of food companies have been depressed for the better part of the last 18 months, stocks of companies engaged in the restaurant business have been among the best market performers during the same period. Companies in the casual dining business, including Buffalo Wild Wings (BWLD), Chipotle Mexican Grill (CMG), BJ’s (BJRI), Panera, (PNRA), Darden (DRI) and California Pizza Kitchen (CPKI) are all trading near the high for the last 12 months and are continuing to report sales and profits growth in spite of the recession
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Posted
Apr 21 2009, 01:12 PM
by
Minyanville
Money Blog: Top Stocks Blog - MSN Money
Given that Americans are embracing thrift, cutting corners and getting by on less, one could logically conclude canned-soup sales would be booming, as families opt to eat in rather than out. Logic, however, often fails.
According to the Wall Street Journal, consumer spending on food fell an inflation-adjusted 3.7% in the fourth quarter of 2008, the biggest drop since World War II. And it’s not just that consumers are turning to lower-priced options - they’re buying less, period.
Campbell’s Soup (CPB), a classic recession play for its affordable dinner options, is scrambling to realign its product offerings with changing consumer preferences. For example, a sales campaign offering 10 cans of condensed soup for $10 didn't boost sales as much as the company hoped. Research showed that while buyers liked the per-can price, they were reluctant to shell out more than was necessary for meals in the immediate future. In short, making rent takes priority over stocking the pantry.
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Posted
Feb 02 2009, 02:18 PM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
Last week, I noted -- not happily -- that the Standard & Poor's 500 Index and the Dow Jones Industrial Average ended January with their worst performances for a first month of the year ever.
That's hardly a good sign for the market. The January barometer suggests 2009 could be, well, dicey.
But some of the sports junkies among us will surely note that the Pittsburgh Steelers' Super Bowl win on Sunday was a good omen for the market. Here's why.
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Posted
Oct 09 2008, 11:52 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
With everyone cowering at the financial Armageddon apparently upon us, let's talk about something positive for a change. In a move that mimics the huge decline in energy prices over the summer, food prices are now falling off and providing some much-needed relief to downtrodden consumers.
Since January, wheat flour is down roughly 32% while corn and soybean oil prices are down 11% and 17%, respectively. Reasons include a rethinking of the biofuel initiative, emerging market turmoil and falling crude oil prices pressuring ethanol refiners.
While we'll all benefit at the checkout counter, the trend will help the nationally branded food companies that have taken price increases to protect margins.
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Posted
Sep 30 2008, 10:37 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Campbell Soup Company, the world's largest soup producer, was the only stock in the S&P 500 index that finished higher in Monday's market massacre.
"If you have no confidence in your banking system and no confidence in the financial markets," said Tom Sowanick, chief investment strategist of Clearbrook Financial in Princeton, N.J., "the only thing you can have confidence in is the ability to build a bunker." Filled, apparently, with cans of chicken noodle.
Households continue to trim their budgets by switching to store brands, reducing restaurant visits, cutting back on bottled water, getting rid of the SUV, and reeling in that daily Starbucks habit. American families are rediscovering the value of soup and halting a long-term sales decline in Campbell's traditional condensed products.
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Posted
Aug 21 2008, 09:06 AM
by
Anthony Mirhaydari
Rating:
Money Blog: Top Stocks Blog - MSN Money
Some of the best investments you can make during economic downturns are those that capitalize on basic human desires.
Consider International Flavors & Fragrances, maker of the tastes and smells we experience in a variety of foods and consumer products. A company that provides simple and inexpensive pleasures is well positioned to soothe the unprecedented pressure on the American consumer.
This is especially true because consumer goods and packaged foods need to appeal to the senses to justify premium pricing over private-label store brands. An example would be Tide's Water Lily and Jasmine laundry detergent.
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