Consumer Staples

  • Boring Liquor's Exciting Opportunity

    By Matthew Luke - March 15, 2013 | Tickers: BEAM, DGE, DEO, PDRDF.PK, PDRDY.PK | Editor's Choice

    Boring companies can be some of the most exciting investment opportunities. When I say “boring," I mean the types of companies that sell the types of products that have existed mostly unchanged for decades, if not longer. When looking for these types of boring investments, it does not get much more boring than the alcoholic beverage industry. And Pernod Ricard (NASDAQOTH: PDRDY), the 216-year old French wine and spirits maker, is a particularly boring company.

  • Healthy Value Opportunity: Danone

    By Matthew Luke - March 13, 2013 | Tickers: BRK-B, DANOY.PK, HNZ, MDLZ, PEP

    Just four months ago activist investor Nelson Peltz took a 1% stake in and laid out his investment thesis for the Paris-based food giant Groupe Danone (NASDAQOTH: DANOY). Peltz most recently made headlines when Warren Buffett’s Berkshire Hathaway announced the $23 billion dollar acquisition of ketchup maker HJ Heinz. This is a deal that was made possibly due in part to Peltz’s advocating for change at Heinz going back in 2006. Shares of Heinz are up about 125% (including dividends) since that time. Peltz’s track record is not limited to Heinz, as he has played a role in the turnaround of many other large-cap food companies. This is a man who knows his food. With the Heinz acquisition now behind the M&A world, it might be prudent to take a look at Peltz’s latest food project.

  • Simplifying the Case for Philip Morris International

    By Justin Carley - March 4, 2013 | Tickers: MO, BTI, PM

    Philip Morris International (NYSE: PM) is the largest publicly-traded tobacco company in the world. Owning seven of the fifteen leading international brands, the company has amassed a market capitalization of roughly $150 billion. This equates to the 18th largest company in the S&P 500. The company has marketed and sold products internationally since 1954 and currently derives 100% of sales outside the United States.  In the stock more »

  • The Emergence of Big Yogurt

    By Matthew Luke - February 28, 2013 | Tickers: GIS, DANOY.PK, HAIN, PEP

    Yogurt as a product category has been one of the consumer staple industry’s fastest-growing segment in recent years. Popular for decades in Europe (where the annual yogurt consumption in some countries is about 70 pounds per person!), yogurt has newfound growth away from Europe as Americans, Canadians and those in the emerging markets have embraced this traditionally European food staple. The US yogurt market in particular has very favorable customer demographics, being primarily driven by 18-34-year-olds.

  • Household Stocks: Not Exciting, but Necessary

    By Nate Wooley - February 1, 2013 | Tickers: CL, KMB, PG, CLX

    Procter & Gamble had a good quarter. Heck, the firm has had two good quarters. And the market just seemed to realize it following the company's most recent earnings statement. That's good, and the way the company's stock jumped after the earnings shows that people can see a good thing. But that's the problem with only looking backward, you're only getting some of the profit.

    That more »

  • Kellogg Earnings: What's Happening Overseas?

    By Matthew Frankel - January 23, 2013 | Tickers: GIS, K, PEP, PG

    Kellogg (NYSE: K) is one of the leading food producers in the U.S. Shareholders have also been rewarded nicely over the past decade with an ever-increasing dividend and a gradual, but steady rise in the share price.  With the company due to report earnings next Monday, there will not be too many surprises, but investors will be listening for updates on how recent acquisitions are playing out.

    <img src="/media/images/user_14267/kellogg-10-year_large.png" />

    Kellogg is more »

  • Altria Group Earnings: Does Big Tobacco Have a Bright Future?

    By Matthew Frankel - January 13, 2013 | Tickers: MO, KRFT, LO, RAI

    The largest U.S. tobacco company, Altria (NYSE: MO) has done very well over the past several years, with an almost linear rise in price since the 2008 lows.  An excellent dividend payer with a 5.4% yield, this is a favorite amongst growth investors and income-seekers alike.  With Altria set to report earnings on Jan. 21, investors are going to want signs that the good times will continue.

    <img src="/media/images/user_14267/altria-5-year_large.png" />

    Altria more »

  • An Analysis of Barron’s 10 Stocks for 2013- Part II

    By Justin Carley - December 20, 2012 | Tickers: BEAM, MPC, NVS, GLD, WDC

    Barron’s 10 picks for 2013 has been published and now it is time to dive in and see where they are likely to be proven correct and where potential pitfalls lie.  Yesterday I highlighted the first five picks and now it is time to analyze the remaining selections.  As a reminder, it is important that investors realize a few characteristics behind Barron’s picks.  They generally seek out some more »

  • A Juicy Food Company With Room to Run

    By Ishfaque Faruk - December 3, 2012 | Tickers: CQB, CORE, DOLE, FDP, SYY

    Most food producing companies are usually fairly valued, because of their stable demand/supply characteristics especially during economic downturns. Screening the large universe of food companies, it is often hard to find a good bargain.  Fresh Del Monte Produce (NYSE: FDP) happens to have a lot of bang for the buck.

    Fresh Del Monte is a leading global producer, marketer and distributor of fruits, vegetables and prepared foods including fresh more »

  • Lower Risk Stocks as we Approach "The Cliff"

    By Justin Carley - November 5, 2012 | Tickers: BUD, BEAM, DEO, STWD | Editor's Choice

    Finally, the election is upon us and we can all escape the political rhetoric SOON.  However, the feeling of relief may not last long as attention will quickly turn to the looming fiscal cliff and its impact on the economy and markets.  I recently highlighted why investors need to maintain an overweight position in equities; however, there are real risks that could have real consequences on one’s portfolio.  While more »

  • One, Two, Three Strikes You're Naked

    By Liz Hoffmann - September 12, 2012 | Tickers: AMZN, AAPL, GRPN, NWS, NWSA, VCI

    Hans Cristian Andersen's "The Emperor's New Clothes" entertains and cautions with a tale of an Emperor and two con artists.  The scoundrels promise to design a fabulous new suit of clothes for the vain, royal fashionista and proclaim that this special garb will be invisible  to anyone who's unintelligent, incompetent, or unfit to serve.  So when the new suit is finally "finished" and consists of nothing, neither more »

  • Why to Play it Safe when Selling to U.S. Consumers

    By Joshua Bondy - September 9, 2012 | Tickers: COST, DG, DLTR, TGT, WMT

    Everyone knows that the U.S. consumer is under a great amount of pressure. With sluggish housing prices an unemployment rate still above 8% there are many negative forces in the U.S. economy. An important part of investing is looking at what is known and what is speculation. Taking fact as theory or theory as fact is dangerous and a very easy way to destroy one's ability to more »

  • ThaiBev Complicates Heineken’s Bid for F&N

    By Peter Pham - September 6, 2012 | Tickers: BUD, DEO, SPY, IPS

    ThaiBev, Thailand’s largest beverage alcohol company, owned by billionaire Charoen Sirivadhanabhakdi, revealed on Tuesday, August 28th that it has purchased another 2.6% stake for $252.4 million in Fraser & Neave (F&N) raising its stake to 29%.  Because of this, it is still possible for them to block Heineken’s bid F&N’s stake in Asia Pacific Breweries (APB).  Heineken already owns 42% of APB but more »

  • Forget Overrated Tech Companies and Look at These Consumer Staples for True Returns

    By Joshua Bondy - August 27, 2012 | Tickers: FB, NWL, PG, TUP

    Substantial long term returns can be found in simple consumer staples. As the recent Facebook  (NASDAQ: FB) fiasco shows, growth stocks do not always workout. With instability in Europe, China, and America cyclical stocks may start to trend downward. Copper is an important industrial commodity which is one signal of economic activity and it has been in a bear market over the past year. Consumer staples can offer steady returns more »

  • Stay Boring

    By Dave Zaegel - August 6, 2012 | Tickers: K, KMP, CLX

    It's easy to get into "chicks dig the long-ball" mode and start swinging for the fences.  But often singles and doubles with a walk or two mixed in will do just fine.  It may not be as exciting, but it will be more consistent.

  • Chipotle's Recent Quarter Offers Clues to Consumer Behavior

    By Damian Ford - July 31, 2012 | Tickers: CMG, MCD, PNRA, WFM, YUM

    It is unnerving to watch a stock like Chipotle Mexican Grill (NYSE: CMG) go down almost $90 or nearly 24% in one day, but it also forces me to take a closer look at a stock that I have been invested in for over three years.  I am a big fan of the giant burritos and the fresh lightly salted nachos served in a brown paper bag.  Considered to be on the high-end of the quick-food market, the feel-good health story of antibiotic and hormone free naturally raised beef, chicken, and pork and chain-wide recycling efforts keep even the most peripheral tree-huggers coming back for more.  Are consumers being drawn to a lower priced menu from McDonald’s (NYSE: MCD) who recently expanded their dollar menu choices or YUM! Brands’ (NYSE: YUM) less expensive spicy offerings from Taco Bell in lieu of the average $10 bill at Chipotle or will they still pay up for heathy food options?

  • Don’t Be Shortsighted on Walgreen

    By Justin Carley - July 22, 2012 | Tickers: CVS, ESRX, WAG

    Walgreen (NYSE: WAG) and Express Scripts (NASDAQ: ESRX) have finally agreed to work together again.  This has ended a long protracted battle that has raged for more than a year.  The battle created great opportunity for patient investors to buy a high-quality, dividend growing company below intrinsic value.  I highlighted the stock value in a blog at the start of the year when shares were trading around $33.  Since then more »

  • For Global Investing, this Corona, Molson and Bud's for You!

    By Jonathan Yates - July 19, 2012 | Tickers: BUD, ABV, GOOG, MSFT, TAP

    Even though strong in recent action, Anheusuer-Busch InBev (NYSE: BUD), Molson Coors Brewing (NYSE: TAP) and Companhia de Bebidas das Americas AmBev (NYSE: ABV) still have much to appeal to income, growth and value investors.

    While offering many products, each has a focus on beer.  In moderation, beer can be considered a consumer staple.  It does have its health benefits.  These are enjoyed by consumers around the globe in increasing more »

  • This Stock’s For You

    By Justin Carley - July 13, 2012 | Tickers: BUD, KO, NSRGY, PEP, UN

    Anheuser-Busch Inbev (NYSE:BUD) shares surged more than 7% on the news that they will buy out the remaining 50% stake in Grupo Modelo.  The biggest just got bigger.  With the transaction, which is set to close in the first quarter of 2013, the company added the fourth most profitable beer in the world (Corona) and now owns five of the top six.  Think about that for a second.  They are so dominant that they sold their Crown import joint venture to Constellation Brands, whose shares also surged on the news, in hopes that regulators won’t spoil the party.  Despite the run-up in the stock to the tune of more than 40% in the last year, happy times still lie ahead for patient investors.

  • Will Europe Kill These 4 Dividend Paying Stocks?

    By Justin Carley - June 29, 2012 | Tickers: CLF, ENR, FCX, MCD

    Earlier this week I discussed some options that investors should consider buying to Euro-proof their portfolios.  Now I want to look at names that should be sold to Euro-proof one’s portfolio.  This weekend presents yet another EU Summit with the likely outcome a bunch of headline quotes, but no on-the-ground action to stem the sinking economic outlook in the region.  This dynamic should raise a red flag on equities more »

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