• Food and Beverage Giants Face Shareholder Activism

    By Mark Yagalla - August 19, 2013 | Tickers: MDLZ, NSRGY, PEP

    Mondelez International (NASDAQ: MDLZ) and PepsiCo (NYSE: PEP) have two significant themes unfolding. The first is emerging markets, where incomes are rising and we are seeing an emerging middle class that wants the same treats as their Western counterparts. The second is activist investors looking to create value for shareholders.

    A delicious world

    Mondelez International is a global snack-foods company that gets approximately 80% of its revenue from outside North more »

  • Post-Split, Kraft Foods Continues to Shuffle Brands

    By Mike Thiessen - August 16, 2013 | Tickers: KRFT, MDLZ, NSRGY

    Less than a year after its blockbuster split with now-independent Mondelez International (NASDAQ: MDLZ), Kraft Foods (NASDAQ: KRFT) has announced plans to separate its already-truncated roster of brands into two distinct divisions. Although the internal split technically occurred in early July, its impacts continues to be felt throughout the company and beyond. It is entirely possible that this move will set up a future spin-off that sees Kraft Foods split more »

  • TRGM: A Unique Story With Lots to “Bite Into”

    By Michal Vladimirsky - August 12, 2013 | Tickers: NSRGY, PFE

    Targeted Medical (TRGM) business model is not well understood, and the stock is trading at a severe discount to proper valuation based on sume of the parts, take-out multiple, and comps.  With 23m shares outstanding, but only ~5k traded daily, the stock is highly illiquid, and its market cap of $25m (coupled with this illiquidity) may not make this a suitable investment for many. Having said that, I believe that more »

  • A Big Beauty Industry Deal Might Be Coming Soon

    By Federico Zaldua - July 30, 2013 | Tickers: COTY, LRLCY.PK, NSRGY

    Nestle (NASDAQOTH: NSRGY), the Swiss Consumer Goods Company (CGC), identifies itself as a seller of “nutrition, health and wellness”. Nestle also owns 29.6% of L'Oreal (NASDAQOTH: LRLCY.PK), the French cosmetics champion (owner of brands such as Lancome and Georgio Armani's beauty products). Nestle has been a friendly long-term shareholder for almost 40 years and has controlled L'Oreal along the Bettencourt family (a +30% shareholder) without more »

  • Can the Packaged Food Industry Seal Profits?

    By Vanina Egea - July 25, 2013 | Tickers: K, NSRGY, UL

    Everyone eats food, but not all foods make profits. Here are three economic moats from the packaged foods industry that promise to make further profits and reward loyal shareholders. In this occasion I have chosen two European and an American company: Nestle (NASDAQOTH: NSRGY)Unilever (NYSE: UL), and Kellogg (NYSE: K).

    Best portfolio and world-leader

    The world’s largest company by revenue, Nestle, is a multinational based in Switzerland. The more »

  • European Vs. American Equities: Valuation Gap

    By Federico Zaldua - July 24, 2013 | Tickers: ADDYY, E, NSRGY

    With economic momentum building in Europe (PMI new orders and real M1 growth are consistent with a GDP growth of 1%, well above consensus) I think its time to start looking towards Europe for opportunities. Besides, more fiscal flexibility in the common currency area and a slightly weaker Euro should also help European corporations in the 2013/2014 period.
    Of course, the US is, from a macro perspective, in much more »
  • Looking For Deals: L'Oreal & Nestle

    By Federico Zaldua - July 23, 2013 | Tickers: COTY, LRLCY.PK, NSRGY

    Nestle (NASDAQOTH: NSRGY) is my favorite diversified Consumer Goods Company (CGC). The Swiss CGC sells everything that goes from water to pet and baby food identifying itself as a seller of “nutrition, health and wellness”. The Swiss company also owns 29.6% of L'Oreal (NASDAQOTH: LRLCY.PK), the french cosmetics champion (owner of brands such as Lancome and Georgio Armani's beauty products). Nestle has been a friendly long-term more »

  • Clash of the Consumer Goods Titans

    By Ryan Palmer - July 18, 2013 | Tickers: NSRGY, PG, UN

    One of legendary investor Peter Lynch's favorite bits of advice for individual investors trying to figure out the stock market on their own was to buy what you know. If you've tried a company's product and enjoyed it, that could be a sign to investigate the stock.

    The following three companies are all giants in the consumer goods industry, and you've probably encountered at least one more »

  • Baby Food: Go Long If Mr. Market Exaggerates the Effects

    By Federico Zaldua - July 12, 2013 | Tickers: DANOY.PK, MJN, NSRGY

    According to a survey by Credit Suisse, in China, 90% of respondents pay attention to food safety in their daily lives and 76% care more about food safety than a year ago. I do not blame them. In recent years, there have been reports of clenbuterol-contaminated pork, harmful chemicals in steamed buns, poisonous bean sprouts or even melamine contaminated milk, among several other food-contamination issues.

    Babies in danger

    In 2008 more »
  • Probing Into Infant Milk May Just Be the Beginning

    By Nick Chiu - July 12, 2013 | Tickers: ABT, MJN, NSRGY

    In early July, in hoping to restore consumers’ confidence, China is investigating several major foreign milk powder sellers for possible price manipulations and breaching of Chinese antitrust law. The pricing of infant formula sold by Abbott Laboratories (NYSE: ABT), Mead Johnson Nutrition (NYSE: MJN), Nestle (NASDAQOTH: NSRGY), Danone, and Royal FrieslandCampina NV are being investigated.

    The bigger picture

    The investigation may be part of China’s broader plan to boost more »

  • This Food Giant Can Make Your Portfolio Fat

    By usha patodia - July 8, 2013 | Tickers: CAG, KRFT, NSRGY

    With the markets experiencing volatility, investors who are looking for stability and long term gains can invest in the consumer food industry. One of my all-time favorites is ConAgra (NYSE: CAG), one of the largest U.S.-based food companies with famous product lines like Healthy Choice, Slim Jim, Peter Pan, and Swiss Miss. The company has faced a lot of criticism over the last few years because of pathetic more »

  • Is This Company's Cash Cow Drying Up?

    By Leo Sun - July 6, 2013 | Tickers: ABT, DANOY.PK, MJN, NSRGY

    Shares of Mead Johnson Nutrition (NYSE: MJN) plunged recently, after Chinese regulators stated that they were investigating claims that foreign companies were intentionally overcharging for infant formula to capitalize on fears of domestic contamination of dairy products. Foreign milk-powder companies have raised their prices 30% since 2008, according to China’s state-controlled People’s Daily newspaper.

    Will this investigation derail the growth of Mead Johnson and its industry peers in more »

  • ConAgra – A Good Long-Term Bet for Patient Investors

    By Nikita Bajaj - July 5, 2013 | Tickers: CAG, KRFT, NSRGY

    ConAgra Foods (NYSE: CAG), North America’s largest packaged-food company, recently reported its earnings for fourth quarter of FY 2013. The company managed to beat the street estimates by $0.01, reporting adjusted diluted EPS of $0.60. Even though the company is very bullish on its future performance in FY 2014 and beyond, it may not perform as expected in the near term. As with many other companies in more »

  • The Best Way to Play the Rise of the "Middle Class" in Emerging Markets

    By Justin Pope - July 3, 2013 | Tickers: KO, NSRGY, V

    America has one of the top economies in the world. Much of that is thanks to what we refer to as the "middle class." The middle class, sometimes referred to as "the consumer," has been driving American economic growth for the last few decades as illustrated in the chart below:                     

    <img alt="" height="239" src="" width="667" />

    Source: Epoch Investment Partners

    This trend has allowed various companies to build immense brand power as consumer staples to the more »

  • This Food Stock Still Looks Delicious

    By Mark Yagalla - July 2, 2013 | Tickers: CAG, KRFT, NSRGY

    ConAgra Foods (NYSE: CAG) likes to say that it makes the food we all love. Well, fourth-quarter earnings blew away expectations, so that statement is looking to be correct. Its brands are thought to be in 97% of all American households. The company's portfolio of brands consists of Hunt's, Healthy Choice, Orville Redenbacher's, Peter Pan, Bertolli, Blue Bonnet, Slim Jim, and Chef Boyardee among others.

    The original more »

  • A Sweet Stock for Investors

    By Tanya Kanodia - July 2, 2013 | Tickers: MDLZ, NSRGY, HSY

    Hershey (NYSE: HSY) is the largest producer of quality chocolate in the United States and has operations throughout the world. Clocking annual turnover over $6.5 billion in 2012, Hershey produces confectionery products under more than 85 brand names, including iconic brands like Hershey's, Kit Kat, Hershey's Kisses, Hershey's Bliss, Jolly Rancher, Ice Breakers and Twizzlers.

    Stock-price performance

    Looking at the annualized return of Hershey, the stock more »

  • Candy Industry Winners - and Great Opportunities for Your Portfolio

    By Michael Douglass - July 1, 2013 | Tickers: MDLZ, NSRGY, HSY, TR

    Investing in the world’s long-term sweet tooth seems like a good idea – after all, I impulse-buy candy all the time in the grocery store checkout line - so there should be some good opportunity there. The companies I will be comparing are Mondelez International (NASDAQ: MDLZNASDAQ: MDLZ)), Hershey (NYSE: HSY), Tootsie Roll Industries (NYSE: TR), and Nestle (ADR) (NASDAQOTH: NSRGY). Nestle and Hershey are your best investing bets; if you feel more »

  • 3 Consumer Giants for the Long Run

    By Anh HOANG - July 1, 2013 | Tickers: NSRGY, PG, UL

    In the newly released list of World’s Most Respected Companies in 2013, Barron’s featured several non-U.S. companies, including Unilever (NYSE: UL) and Nestle (NASDAQOTH: NSRGY). While Unilever ranked eleventh with mean scores of 3.24, Nestle was in the sixteenth position. Should we invest in these highly respected non-U.S. firms at their current prices? Let’s find out.


    Unilever has been performing quite well under more »

  • Consumer Goods: Information You Must Know

    By Federico Zaldua - June 28, 2013 | Tickers: LRLCY.PK, NSRGY, UN

    As an investor in the consumer goods space, I learn there is nothing more relevant for consumer goods companies (CGC) than market share. As CGC businesses are based on distribution, their fixed costs per unit of volume that they sell goes down sharply as they gain market share. Here I post an updated market share trend review for three of the most relevant consumer goods companies in the world.

    Ameliorating more »
  • Where to Invest in the Single-Serve Market

    By Kaitlyn Tokay - June 19, 2013 | Tickers: GMCR, MDLZ, NSRGY

    Shares of Mondelez International (NASDAQ: MDLZ) rose slightly after the announcement of Nespresso-compatible espresso capsules and continuing an investment in its Tassimo multi-beverage product. Tassimo is sold in most major retail stores as well as wholesale on the company's website. There is more to the individual beverage market than selling the best brewing machines, however. Cross-pod contamination from rival companies is emerging as the pod category continues to grow more »

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