BloggingStocks

Battle of the Brands: Oscar Mayer vs. Hebrew National

Trey Thoelcke — 2008-05-03T13:40:00+00:00

Filed under: ConAgra Foods (CAG), Kraft Foods'A' (KFT), Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

While Kraft Foods Inc.'s (NYSE: KFT) Oscar Mayer brand and ConAgra Food Inc.'s (NYSE: CAG) Hebrew National may both have venerable histories, they also have very different personalities: "I wish I were and Oscar Mayer wiener" vs. "We answer to a higher authority."

In 1900, Oscar Mayer and his brothers ran one of the most popular sausage makers in Chicago. They pioneered the use of brand names and voluntary federal approval to protect the reputation of their products. The company was the first to offer packaged sliced bacon. Such innovations helped Oscar Mayer to become an industry leader. The first wiener-mobile rolled out in 1936, and its descendants can still be spotted today. The famous Oscar Mayer jingle was introduced in 1963, and today is one of the longest-running jingles still in use. In 1988 the company launched its Lunchables, prepacked cracker-and-cold-cut school lunches. Oscar Mayer became a Kraft Foods brand in 1989.

Kraft Foods is the largest U.S. food company, with $37.2 billion in sales in 2007. Oscar Mayer is one of seven Kraft Foods brands with more than $1 billion in revenue. The convenience meats category accounted for about 16% of total revenue.

Hebrew National was founded in 1905 in New York City's Lower East Side, and provided kosher sausages and meats to delicatessens. In the 1940s, the company began supplying its products to suburban supermarkets, and went on to become the the largest, most recognized kosher brand in the U.S. The company began using its "higher authority" marketing tag line in 1965, and continued to expand its product offerings. Interest in healthier foods in the 1980s made Hebrew National's no artificial colors or flavors, no fillers, products an appealing option. The company was acquired by ConAgra in 1993, and all Hebrew National products remain certified kosher.

Hebrew National is part of ConAgra's Consumer Foods group, which made up 54% of ConAgra's 2007 revenue of $12 billion.

In a SlashFood taste test, Hebrew National hot dogs scored better than Oscar Mayer ones. Which do find tastier? In the supermarket, which do you reach for, the kids' favorite or the kosher option?

Vote in our poll for Oscar Mayer or Hebrew National as your preferred brand, and let us know in the comments why you love it.

Permalink | Email this | Linking Blogs | Comments

Battle of the Brands: Heinz vs. Hunt's

Trey Thoelcke — 2008-05-02T17:00:00+00:00

Filed under: Consumer experience, ConAgra Foods (CAG), Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When it comes to this staple of kitchens and diners worldwide, the most common question after "Is it ketchup or catsup?" has got to be "Heinz or Hunt's?"

The Hunt Brothers Fruit Packing Company was founded in 1890 by Joseph and William Hunt in Santa Clara, California. It was a small canning business on the ground of a ranch, delivered locally by horse-drawn carriage. In 1946, tomato sauce became the flagship product, and a marketing push made the little red cans familiar across the U.S., and lead to plethora of other tomato-based products, including spaghetti sauce, barbecue sauce, and, of course, ketchup.

Today Hunt's is one brand of many belonging to packaged and frozen foods giant ConAgra Foods Inc. (NYSE: CAG) ranging from Healthy Choice to Slim Jims, from Orville Redenbacher to Egg Beaters. ConAgra reported $12 billion in sales last year.

Heinz was founded in 1869 by Henry John Heinz, at time when canned foods industry was still in its infancy. The company's first product was horseradish, sold in clear glass bottles to show that the product contained no fillers. From there the company branched out to pickles, sauerkraut, vinegar, and, yes, ketchup, to the "57 varieties" made famous in its marketing tag line, and many others.

Today the H.J. Heinz Co. (NYSE: HNZ) is the most global U.S.-based food company. The company dominates the U.S. ketchup market, selling 650 million bottles of ketchup each year. Heinz condiments and sauces can be found in 140 countries. Heinz reported revenue of $9 billion last year.

But this match-up of Heinz and Hunt's isn't really about the companies or their histories. When it comes to ketchup, it's the taste that matters. Cook's Illustrated, the Consumer Reports of food magazines, published the results of their ketchup tasting in the summer of 2006. In blind tastings, Heinz didn't fare so well when compared to Hunt's. Participants found Heinz regular ketchup "too sweet" or "bland," while the Hunt's was described as "tangy" and "fresh." There is a bit of good news for Heinz, though. Tasters seem to like Heinz's organic ketchup better than the regular.

But this certainly wasn't the first taste test, and it won't be the last. Results vary from test to test. What do you think? Do you like one better ketchup than the other?

Vote in our poll for Heinz or Hunt's as your preferred brand, and let us know in the comments why you love it.

Permalink | Email this | Linking Blogs | Comments

ConAgra Foods (CAG): Share price forming bullish 'pennant'

Larry Schutts — 2008-04-02T13:17:00+00:00

Filed under: Earnings reports, ConAgra Foods (CAG), Technical Analysis, Kraft Foods'A' (KFT), Unilever ADR (UL), Stocks to Buy

ConAgra Foods (NYSE: CAG) is a top food producer, offering packaged and frozen foods, seafood and dairy products to retail, foodservice, commercial product and international customers. Among the company's many brands are Hunt's, Banquet, Chef Boyardee, Van Camp's, Healthy Choice, Orville Redenbacher's, PAM, Slim Jim and Wesson. Major competitors include Kraft Foods (NYSE: KFT) and Unilever (NYSE: UL).

The company pleased investors late last month, when it reported Q3 EPS of 63 cents and revenues of $3.53 billion. Analysts had been expecting 41 cents and $3.20 billion. Management also guided FY08 EPS to $1.80-$1.85 ($1.60 consensus) and announced that it would sell the company's trading and merchandising arm to the Ospraie Special Opportunities fund and others for $2.1 billion.

The share price popped on the news and has since been consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", two "buys", five "holds" and one "underperform". The CAG P/E ratio (12.84), PEG ratio (1.58), Price to Sales ratio (0.88), Price to Book ratio (2.32), Price to Cash Flow ratio (9.52), Sales Growth rate (20.90%) and EPS Growth rate (70.27%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 73% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $20.85 and $27.45. A stop-loss of $20.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Adobe, ConAgra, Lennar, Oracle, Tiffany, Darden and others

Trey Thoelcke — 2008-03-29T15:40:00+00:00

Filed under: Earnings reports, Walgreen Co (WAG), Penney (J.C.) (JCP), Adobe Systems (ADBE), Tiffany and Co (TIF), ConAgra Foods (CAG), Darden Restaurants (DRI), KB HOME (KBH), Lennar Corp'A' (LEN), Oracle Corp (ORCL), CKE Restaurants (CKR)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

AAR Corp. (NYSE: AIR) posted record third-quarter earnings and revenue.
Adobe Systems Inc. (NASDAQ: ADBE) posted better-than-estimated first-quarter results and raised its outlook.
CKE Restaurants Inc. (NYSE: CKR) posted third-quarter results that missed estimates.
ConAgra Foods Inc. (NYSE: CAG) third-quarter profit surged as strong sales offset commodity prices.
Darden Restaurants Inc. (NYSE: DRI) beat third-quarter expectations and offered guidance.
FactSet Research Systems Inc. (NYSE: FDS) second-quarter results beat estimates and it raised its outlook.
Fortress Investment Group (NYSE: FIG) remained upbeat despite a fourth-quarter loss.
Guess Inc. (NYSE: GES) record fourth-quarter results beat Wall Street expectations.
Inter Parfums Inc. (NASDAQ: IPAR) posted better-than-estimated fourth-quarter results and raised its outlook.
Jabil Circuit Inc. (NYSE: JBL) beat second-quarter expectations but lowered its guidance.
JC Penney Co. Inc. (NYSE: JCP) lowered its first-quarter outlook on weaker-than-expected sales.
KB Home (NYSE: KBH) swung to a larger-than-expected first-quarter loss on write-downs.
Lennar Corp. (NYSE: LEN) posted a smaller-than-expected first-quarter loss.
Monsanto Co. (NYSE: MON) raised its second-quarter and full-year guidance.
Oracle Corp. (NASDAQ: ORCL) merely met earnings expectations, sending shares lower.
Tiffany & Co. (NYSE: TIF) posted better-than-estimated fourth-quarter results and raised its outlook.
Usana Health Sciences Inc. (NASDAQ: USNA) posted lower-than-expected first-quarter results.
Walgreen Co. (NYSE: WAG) posted solid second-quarter results, including same-store sales growth.

Also, auction-rate securities issues may hurt some tech company results. Analysts keep cutting earings estimates for the big banks, but some are eyeing Yum! Brands (NYSE: YUM) earnings prospects as it expands in China, as well as Archer Daniels Midland (NYSE: ADM) on soaring demand for commodities.

Upcoming results to watch for include Best Buy (NYSE: BBY), Monsanto (NYSE: MON), and Research in Motion (NASDAQ: RIMM).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Closing Bell: More negative close than it felt like

Jon Ogg — 2008-03-27T16:57:00+00:00

Filed under: Google (GOOG), ConAgra Foods (CAG), Oracle Corp (ORCL), Lehman Br Holdings (LEH)

The Commerce Department's Q4-2007 final revision for GDP came in at +0.6%, but that was in-line and the data is now more than 75-days old. But it does highlight the concerns that the growth rates this quarter just can not be good. It also set the tone for more selling. It just goes to show that it still pays in today's climate to sell when you are feeling good about the market and buy when you feel overly concerned.

The Federal Reserve also auctioned off some $75 billion in treasury securities after receiving bids for some $86.1 billion. This was the first auction of its kind and the next auction is set for April 3. Below are the unofficial closing prices:

DJIA 12,302.70 (-120.16; -0.97%)
NASDAQ 2,280.83 (-43.53; -1.87%)
S&P500 1,325.77 (-15.36; -1.15%)
10YR-TBond 3.534% (+0.04%)
Key 52-Week Lows

If you look at the unusual increase seen in short selling in many of the NASDAQ names from this morning, you might scratch your head. But that's the world we live in.

3Com Corporation (NASDAQ: COMS) was a standout call today, as Bernstein raised its rating to an outperform after this stock had been pounded and pounded. Shares closed up 5% at $2.25. Top 10 Pre-Market calls available.

Elsewhere in technology, Oracle Corporation (NASDAQ: ORCL) was the more active loser today after the company's revenues were slightly under target yesterday. Shares closed down 7% at $19.43.

Google Inc. (NASDAQ: GOOG) saw shares fall by 3% more down to $444.08 after different measurement numbers out of comScore showed soft ad-click trends and after analysts took down their targets this week on the internet search giant.

Lehman Brothers Holdings, Inc. (NYSE: LEH) had to issue an "all-clear" bulletin after negative rumors were circling the stock after what was deemed unusual out of the money put option activity. Lehman closed down almost 9% at $38.71. Meredith Whitney at Oppenheimer made several more cuts in financial stocks today.

ConAgra Foods, Inc. (NYSE: CAG) is apparently not feeling the pain of higher energy, feedstock, and commodity prices as the company blew past earnings expectations on strong year over year earnings. Shares closed up a sharp 7% to $23.45.

Permalink | Email this | Linking Blogs | Comments

ConAgra (CAG) quarterly profit surges 60% on strong sales

Eliza Popescu — 2008-03-27T10:22:00+00:00

Filed under: Earnings reports, Forecasts, Consumer experience, ConAgra Foods (CAG)

Shares of food maker ConAgra Foods Inc. (NYSE: CAG) have been soaring in early trading more than 9% after reporting this morning a surge of 60% in its third quarter profit.

The company said its quarterly profit climbed to $309 million, or 63 cents per share due to higher prices and demand for its products. These numbers are up from $193 million, or 38 cents per share reported in the same period a year ago when the company's earnings numbers were dragged down by recall costs. Analysts, on average, expected quarterly earnings of 39 cents per share.

ConAgra's quarterly revenue grew to $3.53 billion, up from $2.9 billion a year ago. Revenue during the period was helped by strong gains from the company's food and ingredients segment which offset soaring commodity costs. Analysts expected the company show sales of $3.17 billion in the third quarter, according to Thomson Financial.

ConAgra also announced it would sell the trading and merchandising business to the Ospraie Special Opportunities fund for $2.1 billion. This move is designed to help the company to focus on its core consumer foods business and to repurchase ConAgra shares.

Looking ahead, the company showed confidence over its further earnings and lifted its fiscal 2008 earnings outlook. ConAgra now expects 2008 earnings between $1.80 and $1.85 per share, compared with its prior forecast for a profit of $1.55 per share. Analysts predicted 2088 earnings of $1.60 per share.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

Read | Permalink | Email this | Linking Blogs | Comments

Option Update: ConAgra volatility elevated into EPS & trading divesture

Paul Foster — 2008-03-27T09:05:00+00:00

Filed under: Earnings reports, ConAgra Foods (CAG), Options

ConAgra (NYSE: CAG) is recently trading at $23 in pre-open trading, above its close of $21.89.

CAG reported Q3 diluted EPS of 63 cents. CAG reaffirmed long-term EPS view of 8-10%. CAG agreed to sell its commodity trading and merchandising operations to Ospraire Special Opportunities fund for approximately $2.1 billion.

CAG April option implied volatility of 51 is above its 26-week average of 27 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Permalink | Email this | Linking Blogs | Comments

Oversold stocks, how to pay zero taxes & new ways to save - Today in Money 3/27

Allan Halprin — 2008-03-27T09:02:00+00:00

Filed under: McDonald's (MCD), Money and Finance Today, Clear Channel Commun (CCU), ConAgra Foods (CAG), Lennar Corp'A' (LEN), Oracle Corp (ORCL), AMR Corp (AMR), Delta Air Lines (DAL)

In the News:

· 4th Quarter GDP Rises Only 0.6%

· More Government Bailouts May Be on the Way

· Oracle Shares Plunge on Disappointing Earnings

· Lennar Posts Another Loss, Sees Worsening Housing Market

· ConAgra Profit Rises 60%

· Clear Channel Wins Ruling on Buyout

· Bus Tours Showcase Foreclosed Homes

· YouTube to Provide More Viewership Info

· More American & Delta Flights Canceled

· Egg McMuffin Inventor Dies at 89

Oversold Stocks Worth a Closer Look
These stocks have taken a pounding in the past few months. But they're looking ripe for smart buyers now. They include Nvidia, Game Stop and Seagate.
Timely Trio Of Oversold Stocks - Forbes.com

How to Pay Zero Taxes
Nearly 50 million Americans do it. But once you see how, you'll be glad you're not one of them. Here are top ways you can get your taxes to zero.
How to pay zero taxes - MONEY Magazine

Want to Slash Your Gas Prices? Slow Down
There is one driving tip that will probably save you more gas than all the others, especially if you spend a lot of time on the highway: Slow down. Speeding on the highway adds a surprising amount to your fuel costs. Drive 100 miles in a typical car and every 10 miles per hour you drive over 60 is like the price of gasoline going up about 59 cents a gallon.
Speeding wastes gas - CNNmoney

Fastest Growing Metro Areas in U.S.
Dallas-Ft. Worth tops population growth according to numbers released by the U.S. Census Bureau Thursday. 8 of the top 10 growers are in the south. The include Atlanta, Phoenix, Houston, Riverside, CA, Charlotte and Austin.
Dallas-Fort Worth, Texas grows more than any other U.S. city - CNNmoney

New Ways to Save
The days of earning 4% or more in a savings account aren't over quite yet. A few big-name banks, such as Wachovia and Washington Mutual, are aiming to buck the downward trend of lower rates. They're offering new savings accounts that boast annual percentage yields of up to a very attractive 6.5%. Just watch out for all the restrictions.
New Savings Accounts Come With Perks and Restrictions - SmartMoney.com

How Safe Are Your Medical Records?
A host of big-name companies is launching initiatives aimed at helping people take control of their personal health-care information and making it more useful to them. But the elephant in the room is privacy.
As more of our health records move online, privacy concerns grow - MarketWatch

Most Overexposed Celebrities
We are so over these celebrities who can't seem to avoid the spotlight. Topping the list are five women that just won't go away -- Paris Hilton, Britney Spears, Lindsay Lohan, Pam Anderson and Nicole Richie.
Most Overexposed Celebrities - Forbes.com

Permalink | Email this | Linking Blogs | Comments

Before the bell: CAG, PLCE, RMBS, MER, BA. KO, VLO, MOT ...

Melly Alazraki — 2008-03-27T08:20:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Coca-Cola (KO), Motorola (MOT), Walt Disney (DIS), Boeing Co (BA), Merrill Lynch (MER), ConAgra Foods (CAG), Valero Energy (VLO)

Before the bell: Futures higher ahead of GDP; ORCL drops, CCU climbs, LEN beats

Despite higher costs, ConAgra Foods Inc. (NYSE: CAG) fiscal third-quarter net income climbed 60% to $309.1 million, or 63 cents a share. Sales for the quarter increased 21% to $3.53 billion.

Hoop Holdings, a unit of Children's Place Retail Stores Inc. (NASDAQ: PLCE) and the operator of Disney Store North America, said late on Wednesday that it filed for Chapter 11. Children's Place isn't part of the Chapter 11 petition, but is in talks to sell a substantial part of the Disney Store business to Walt Disney Co. (NYSE: DIS) in order to concentrate on its core namesake brand.

Rambus (NASDAQ: RMBS) shares are advancing another 4.4% in premarket trading after closing up over 38% yesterday following a court decision finding it wasn't guilty of fraud or violating antitrust laws in dealing with an industry group that set technology standards for dynamic random access memory, or DRAM, chips in the 1990s.

Once again Oppenheimer analyst Meredith Whitney struck today. This time, it said Merrill Lynch (NYSE: MER) and UBS AG (NYSE: UBS) probably will post a first-quarter loss because of writedowns on the value of debt securities. The analyst lowered her estimates. She forecasts writedowns at MER now at $6 billion (up from $2 billion) and $11 billion at UBS. She estimates MER will post a loss of $3 per share in the quarter, rather than her earlier estimate of a profit of $0.45 per shares. Similarly, she reduced full year estimates. MER shares are down 1.75% in premarket trading.

Boeing Co. (NYSE: BA) said Thursday it has received an order from Turkmenistan Airlines for three 737 aircraft worth about $221 million.

Coca-Cola Co. (NYSE: KO) and its Greek bottling unit will begin selling three ready-to-drink coffee beverages next month with Illycaffe SpA to bolster sales. The three beverages will be sold in 10 of the 28 countries where Athens-based Coca-Cola Hellenic operates.

Halliburton (NYSE: HAL) was upgraded by RBC from Sector Perform to Outperform.
Valero Energy (NYSE: VLO) was upgraded by Deutsche Securities from Hold to Buy.
Motorola (NYSE: MOT) was downgraded by Banc of America from Buy to Neutral.

Permalink | Email this | Linking Blogs | Comments

Option Update: ConAgra volatility elevated into EPS & outlook

Paul Foster — 2008-03-24T13:16:00+00:00

Filed under: ConAgra Foods (CAG), Options

ConAgra (NYSE: CAG) is scheduled to report Q3 EPS on March 27 (Thursday).

Deutsche Bank has a $23 price target on CAG.

CAG April option implied volatility of 32 is above its 26-week average of 26 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX down 1.44 to 25.18.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Permalink | Email this | Linking Blogs | Comments

Del Monte Foods Company (DLM): Shares consolidating in bullish 'flag'

Larry Schutts — 2008-03-07T13:05:00+00:00

Filed under: Earnings reports, ConAgra Foods (CAG), General Mills (GIS), Technical Analysis, Stocks to Buy

Del Monte Foods Company (NYSE: DLM) is one of the largest producers and distributors of branded food and pet products for the U.S. retail market. Its Consumer Products segment produces fruits, vegetables, tuna, broths and tomato-based foods under such well-known brand names as Del Monte, StarKist, S&W, Contadina and College Inn. Its Pet Products segment offers the Meow Mix, Kibbles 'n Bits, 9Lives, Milk-Bone, Meaty Bone, Snausages and Pounce brands. The company also produces and distributes private label food and pet products. ConAgra Foods (NYSE: CAG) and General Mills (NYSE: GIS) are major competitors.

Del Monte pleased investors last week, when it reported fiscal Q3 EPS of 28 cents and revenues of $1 billion. Analysts had been expecting 24 cents and $960 million. The CEO attributed success to pricing actions and cost reductions. Management also guided Q4 EPS to 27-31 cents (25 cent consensus) and Q4 revenues to about $0.997-$1.02 billion ($992.8M consensus).

The share price popped through 30-day, 50-day and 90-day moving average resistance on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy", one "buy", six "holds" and one "underperform". The DLM P/E ratio (15.78), Price to Sales ratio (0.52), Price to Book ratio (1.28), Price to Cash Flow ratio (8.27), Price to Free Cash Flow ratio (27.73) and EPS Growth rate (15.38%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 89% of the outstanding shares. Over the past 52 weeks, the stock has traded between $7.57 and $12.94. A stop-loss of $7.80 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

Permalink | Email this | Linking Blogs | Comments

ConAgra knows food demand is continual, not cyclical

Joseph Lazzaro — 2008-03-03T17:16:00+00:00

Filed under: ConAgra Foods (CAG), Stocks to Buy

With the markets in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio. And with the above in mind ConAgra is worth an evaluation.

ConAgra (NYSE: CAG) is one of the largest food companies in North America.

Analysts see moderate revenue growth for ConAgra in F2008, with large profits from its trading and merchandising businesses. CAG's food / ingredients unit should also register a solid increase in earnings.

Meanwhile, CAG's consumer foods line should perform adequately in F2008: analysts had originally expected the unit to record lower profits, but there are abundant signs that that will not be the case. The Reuters F2008/F2009 EPS consensus estimates for CAG are $1.59/$1.63.

In addition, analysts remain impressed by ConAgra's cost controls amid an even tougher business environment. Further, analysts like the fact that CAG has sold-off its agricultural segments and a number of non-core brands in order to produce only branded and value-added packaged foods.

The risks? Analysts are keeping an eye on CAG's commodity costs and on increasing competition from generic-frozen food producers.

The First Call mean rating for CAG is: Hold. [9 firms.] Mean 2008 target: $28. [high: $33, low: $24.]

Stock Analysis: ConAgra is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from shares. Sell / Stop Loss if you were to purchase shares in this company: $13.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Permalink | Email this | Linking Blogs | Comments

H. J. Heinz Company (HNZ): Price cycling in bullish 'pennant' formation

Larry Schutts — 2008-02-21T14:15:00+00:00

Filed under: Analyst upgrades and downgrades, Good news, Campbell Soup (CPB), ConAgra Foods (CAG), Technical Analysis, Stocks to Buy

H. J. Heinz Company (NYSE: HNZ) is one of the world's largest food producers, offering ketchups, condiments, sauces, frozen foods, soups, beans, pastas, infant foods and other processed food products to retailers, the foodservice industry and the U.S. military. The firm's leading brands include Heinz ketchup, Ore-Ida potato products, Weight Watchers Smart Ones entrees, Boston Market meals and T.G.I. Friday's snacks. Sixty percent of sales are generated outside of the United States. Campbell Soup (NYSE: CPB) and ConAgra Foods (NYSE: CAG) are major competitors.

The company pleased investors last week, when it guided Q3 EPS to 67-68 cents. Analysts had been looking for 63 cents. The Q3 results are expected to include commodity cost inflation, which the firm is overcoming with higher net pricing, productivity gains and favorable foreign exchange rates. Management also guided FY08 EPS to $2.60-$2.62 ($2.62 consensus). Merrill Lynch subsequently upgraded its HNZ recommendation to "buy".

The stock price popped through major moving average resistance on the news and then settled into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the issue with three "strong buys", five "buys" and four "holds". The HNZ P/E ratio (17.76), Price to Cash Flow ratio (12.87), EPS Growth rate (20.34%) and Return on Equity (39.27%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 69% of the outstanding shares. The stock is one of those used to calculate the S&P 100 and S&P 500 Indexes. Over the past 52 weeks, it has traded between $41.37 and $48.75. A stop-loss of $39.50 looks good here. Note that the firm is scheduled to present third quarter results on February 26th, before the open.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

Permalink | Email this | Linking Blogs | Comments

Best & Worst stocks of '07, one-year AMT fix passed, returns may be delayed & worst sttes for speeding - Today in Money 12/20

Allan Halprin — 2007-12-20T08:25:00+00:00

Filed under: Starbucks (SBUX), Coca-Cola (KO), Amazon.com (AMZN), Home Depot (HD), McDonald's (MCD), Citigroup Inc. (C), Money and Finance Today, Tribune Co. (TRB), ConAgra Foods (CAG), Countrywide Financial (CFC), Research in Motion (RIMM), Amer Intl Group (AIG), NIKE, Inc'B' (NKE), Oracle Corp (ORCL), Washington Mutual (WM), Merck and Co (MRK), Bear Stearns Cos (BSC)

In the News:

· One-Year AMT Fix Passed By Congress; 20 Million Taxpayers Saved

· Oracle Profits Jump 35%, Stock Soars

· Bear Stearns Posts First Quarterly Loss Ever, Mortgage-Related Writedowns $1.9 Billion

· Nike Profit Rises 10%, Pushed By Overseas Sales

· ConAgra Profit Jumps 15%

· Tribune Co. Poised to Go Silent Under Sam Zell

· Retail Sales Weak Over Holidays, But 35 Million People Haven't Started Shopping

· MTV to Break Into Video Games With Jerry Bruckheimer

· NetSuite $26 IPO Price at High End of Range

· Minivan Bumpers Do Poorly in Tests

· Boomers Discover It's Easy Being Green

Tax Change May Mean Delay in Refunds
More than 20 million taxpayers will escape the alternative minimum tax this year, thanks to a stopgap measure Congress approved Wednesday. But lawmakers waited so late in the year to vote that many early filers could have to wait until March to get their refunds. Ordinarily, the IRS starts processing tax returns in mid-January. But the schedule will be delayed this time because the IRS will need about seven weeks to reprogram its computers to reflect changes in the tax law.
Tax change may mean delay in refunds - USATODAY.com

Best and Worst Stocks of 2007
These are the stocks and sectors that came out ahead - and far behind during a very volatile year for Wall Street. Among the winners were Amazon.com, Research in Motion, Merck, McDonald's, Coca-Cola and National Oilwell Varco which was the biggest gainer in the S&P 500 with a 128% gain. The top Nasdaq stock was Baidu.com with a 231% gain. The biggest losers of 2007 were E*Trade which was down 84%, followed by Countywide Financial with a 78% drop. Other losers include Citigroup, Washington Mutual, Pulte Homes, AIG, Home Depot, Sepracor and Starbucks.
2007 stock winners and losers - CNNmoney

Worst States for Speeding
Taking a road trip home for the holidays this year? Be sure to go easy on the gas pedal, particularly if your travels take you up or down the East Coast. Even a first offense can bring a four-digit fine in some parts of the country. Topping the list is Virginia where the maximum fine for a first speeding ticket is $1,350.
The Most Expensive States For Speeding Tickets 2007 - Forbes.com 10 Worst States for Speeding

Starbucks vs. Dunkin' Donuts
Starbucks positions itself as a provider of coffee for the upscale connoisseur, while Dunkin' Donuts roasts joe for the Average Jane. Yet despite their differences, the country's two coffee biggies are looking more similar than ever this holiday as they battle over the $10 billion premium coffee business.
Battle brews for your coffee-drinking habit - USATODAY.com

Your House Isn't the Cash Cow It Once Was
Home-equity loans have gotten riskier as home prices fall. So before you consider this route here is what expert financial experts say you should consider before borrowing from their equity in the present declining market, and what you should know about the equity line you may already have.
Your House Isn't the Cash Cow It Once Was - TheStreet.com

Web Celeb 25
Forbes second annual list of the biggest stars on the Internet include gossip blogger Perez Hilton who replaces YouTube star LonelyGirl15 at the top of the list in 2007. TechChrunch's Michael Arrington comes in second place.
The Web Celeb 25 - Forbes.com

Permalink | Email this | Linking Blogs | Comments

Top stocks for 2008, 101 dumbest moments in business & drunk driving could cost $20,000

Allan Halprin — 2007-12-17T08:42:00+00:00

Filed under: Cisco Systems (CSCO), Money and Finance Today, Merrill Lynch (MER), ConAgra Foods (CAG), FedEx Corp (FDX), United Parcel'B' (UPS)

In the News:

· Holiday Online Spending Up 18%

· Ingersoll-Rand Buys Trane for $10.1B

· Merrill Lynch Slashed Bonuses

· Greenspan Says Giving Financial Aid to Struggling Home Owners

· A New Blueprint for Cisco

· 'I Am Legend' Sets December Box Office Record

· 125-Year Old Traditional Light Bulbs May Be Extinct Over Next 4-12 Years

· Microwave Popcorn Controversial Chemical Removed

· Jim Cramer: Mad No More?

· December 20 Is National Re-gifting Day: Host a Re-gifting Party

Wild 2008 Investing Forecast
Got the stock market jitters? Get used to it. Next year should be another wild ride on Wall Street. That's not to say stocks won't rise in '08. Just that the ride is likely to be bumpy, with the possibility of nasty sell-offs and confidence-building rallies along the way. Five top Wall Street gurus share their hopes and fears for the coming year.
Where Are Stocks Headed in 2008? - USA Today 8 Ideas for '08 Stock Picks of the Pros

101 Dumbest Moments in Business
Jessica Simpson stars in commercials for Pizza Hut's Cheesy Bites pizza, then tells Elle magazine that she's allergic to wheat ... and tomatoes ... and cheese. Whoops!!! This is just one example of what a dumb year it was! Fortune chose the absolutely dumbest of the dumb that the gods of fate and humor delivered into our laps - and yours - this past year.
101 Dumbest Moments in Business - FORTUNE

2007 Advertising Highs & Lows
The snackmeister Orville Redenbacher has been dead since 1995, but ConAgra, the maker of his namesake popcorn products, revived him in commercials with a digital doppelgänger. The zombielike results were grotesque enough to inspire critics to rebrand the character as "Orville Deadenbacher." Six months after the ads first appeared, ConAgra buried the campaign, dismissed the creative agency and moved the account elsewhere. This was a year for quick hits and fast flops as campaigns broke new ground.
A Year for Quick Hits and Fast Flops as Campaigns Broke New Ground - New York Times

For Last-Minute Shoppers, It's All About Shipping
This week, more packages will be shipped than any week of the year, says Susan Rosenberg, UPS spokeswoman. More packages, cards and letters will be mailed at the post office today -- roughly 1 billion -- than any day of the year, says Joanne Veto, spokeswoman for the United States Postal Service. Here's an update from UPS, USPS, FedEx, Wal-Mart.com, Amazon.com, ToysRUs.com, BestBuy.com, CircuitCity.com, Landsend.com on your deadline for getting gifts for the holidays.
For last-minute shoppers, it's all about shipping - USATODAY.com

Drunk Driving Could Cost $20,000
With the holidays upon us, early December through the new year is one of the worst times for drinking and driving. One drink too many puts you at risk for not only an arrest, but also for fees, fines and costs that can run you thousands of dollars. Here are potential financial costs you might realize.
Drunk driving could cost $20,000 - Bankrate.com

Help! Our Kids Are Driving Us Broke
Teach your teens and tweens budgeting basics and avoid going breaking the bank.
Going broke: budgeting basics for kids - and parents - MONEY

10 Reasons You Shouldn't Loan Friends Money
Most of us will, as we grow up, at some point be hit up for a loan by a friend. Most of us agonize over the decision, but there's no reason you should. To prepare you against that day, consider this list of ten reasons you shouldn't loan money to your friend.
Ten reasons you shouldn't loan money to friends - WalletPop

Shopping Bags Are the Fashion
Once a flimsy afterthought in American retailing -- used to lug a purchase home from the store, then tossed into the trash -- the lowly, free store bag is undergoing a luxurious makeover. From upscale emporiums to midprice chains, retailers are engaged in a heated competition to make the most durable, fashionable shopping bags.
Never Mind What's in Them, Bags Are the Fashion - New York Times

Oprah's Favorite 'Favorite Thing'
If you want to be considered an inspiring leader, give Winfrey's favorite "favorite thing"-the gift of appreciation.
Oprah's Favorite 'Favorite Thing'

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Revised forecasts for Merck, Comcast, Target, ConAgra

Trey Thoelcke — 2007-12-09T09:40:00+00:00

Filed under: Earnings reports, Forecasts, Dell (DELL), Target Corp. (TGT), Krispy Kreme Doughnuts (KKD), Comcast Cl'A' (CMCSA), ConAgra Foods (CAG), Merck and Co (MRK), Toll Brothers (TOL), Palm Inc (PALM)

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Big Lots Inc. (NYSE: BIG) reported a record quarter due in part to improved distribution.
Blyth Inc. (NYSE: BTH) trounced EPS estimates and raised its guidance.
ConAgra Foods Inc. (NYSE: CAG) raised its earnings forecast for Q2 on strength in merchandising.
Donaldson Co. (NYSE: DCI) beat estimates due to strength in international markets.
J. Crew Group (NYSE: JCG) posted a solid quarter due to strength in both store and direct sales.
Krispy Kreme Doughnuts Inc. (NYSE: KKD) narrowed its loss, but foresees further store closures.
Liquidity Services Inc. (NASDAQ: LQDT) posted a strong quarter, benefiting from the sluggish economy.
Merck & Co. Inc.'s (NYSE: MRK) earnings forecasts for 2007 and 2008 fall short of expectations.
Netezza Corp. (NYSE: NZ) beat expectations of both earnings and revenue.
Palm Inc. (NASDAQ: PALM) forecast a loss for the current quarter due to product delays.
Royal Bank of Scotland's (NYSE: RBS) better-than-expected forecast buoyed European banks.
SeaChange International (NASDAQ: SEAC) reported a profit when analysts expected a loss.
Sigma Designs (NASDAQ: SIGM) had a "blowout" quarter, beating even the most optimistic analyst.
SkillSoft (NASDAQ: SKIL) beat expectations of both earnings and revenue.
Toll Brothers Inc. (NYSE: TOL) posted a lower-than-expected loss, its first quarterly loss in 21 years.

Also, Brian White looks at how loss of market share contributed to Dell Inc.'s (NASDAQ: DELL) recent results. Both Douglas McIntyre and Jim Cramer mull the effect on the cable industries of Comcast Corp.'s (NASDAQ: CMCSA) lowered guidance. And Target Corp. (NYSE: TGT) is among retailers warning about earnings in the current quarter.

Upcoming results to watch for include: H&R Block (NYSE: HRB), Kroger Co. (NYSE: KR), Costco (NASDAQ: COST), and Lehman Bros. (NYSE: LEH).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

ConAgra Foods (CAG) raises forecast for Q2 earnings

Brent Archer — 2007-12-06T13:01:00+00:00

Filed under: Forecasts, Good news, ConAgra Foods (CAG), Options, Technical Analysis

ConAgra Foods, Inc. (NYSE: CAG) shares are trading higher today after the company raised its outlook for Q2 earnings (expected 12/20) due to strong performance in trading and merchandising. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CAG.

After hitting a one-year high of $28.35 last December, the stock hit a one-year low of $22.81 in November. CAG opened this morning at $24.90. So far today the stock has hit a low of $24.86 and a high of $25.61. As of 11:20, CAG is trading at $25.56, up $1.17 (4.8%). The chart for CAG looks bearish but improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a March bull-put credit spread below the $22.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 6.4% return in just 4 months as long as CAG is above $22.50 at March expiration. ConAgra would have to fall by more than 15% before we would start to lose money.
CAG hasn't been below $22.50 at all in the past year and has shown support around $23 recently. This trade could be protected by strong support around $23 where the stock bottomed in early November.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in CAG.

Read | Permalink | Email this | Linking Blogs | Comments

Sara Lee, ConAgra among food firms suspected of gouging troops

Tom Barlow — 2007-10-17T13:02:00+00:00

Filed under: Bad news, Scandals, Sara Lee Corp (SLE), ConAgra Foods (CAG)

Update: Yesterday's (10-17-07) Wall Street Journal (subscription) article about this investigation began "Prominent American food companies are under scrutiny in a federal probe of possible fraud and corruption in the military's food-supply operations for the Iraq war", and went on to read "The inquiry is focused on whether the food companies set excessively high prices when they sold their goods to the Army's primary food contractor for the war zone." Today's (8-18-07) WSJ article about the investigation reported a very different slant to the story, suggesting that, rather than pursuing American producers, the government was investigating the wholesaler and companies involved in the Kuwait end. Given this change, I find the story I have written below no longer substantiated, and caution readers to wait along with me for more reliable information.

In accordance with our policy of owning up to what we have written, the post will remain.

A number of American food companies including Sara Lee (NYSE:SLE), ConAgra (NYSE: CAG) and Perdue Farms Inc. have come under suspicion of conspiring with Kuwait-based Agility Corp., a logistics supplier for the U.S. troops in Iraq, to inflate food supply costs. In June, Agility received a new, one-year, $2.8 billion contract to provide life support (billeting, motor pool, dining and medical support services) to troops in Iraq. Agility, until recently known as Public Warehousing, has enjoyed a series of support contracts throughout much of the Iraq conflict.

According to Reuters, the Defense and Justice Departments are investigating allegations that Agility may have taken kickbacks from its suppliers, as well as charging the U.S. military unreasonably high prices for provender.

Agility, founded in 1979, was taken public in 1997 and is traded on the Kuwait exchange. It employs over 20,000 people in over 100 countries, with an annual revenue of $4.5 billion. In June, it was also awarded a $43.6 million contract for base operations and maintenance services at U.S. Air Force bases in Spain.

Update: ConAgra has put out a press release claiming that the DOD is looking to them as witnesses, rather than perpetrators.

Permalink | Email this | Linking Blogs | Comments

Best small companies, how to deal with a product recall & tax procrastinators pay up - Today in Money 10/12

Allan Halprin — 2007-10-12T09:06:00+00:00

Filed under: eBay (EBAY), General Electric (GE), Wal-Mart (WMT), McDonald's (MCD), Citigroup Inc. (C), IAC/InterActiveCorp (IACI), Money and Finance Today, ConAgra Foods (CAG), Oracle Corp (ORCL), Under Armour'A' (UA)

In the News:

· Inflation Remains Tame as Producer Prices Unexpectedly Rises

· Oracle Launches Hostile Bid for BEA Systems

· GE Earnings Meet Estimates, Profit Rises 14%

· Citigroup Restructures Management After Dim Outlook

· ConAgra Expands Pot Pie Recall

· eBay Meets Facebook

· McDonald's Offers Bullish Outlook

· Wal-Mart CEO Defends Low-Cost Imports

· Drugmakers Pull Kids Cough & Cold Medicines

· Business Magazine's Like BW, Fortune & Forbes Facing Many Issues

· BusinessWeek Looks for Some Magic With Redesign

· Fox Business Network Must KO CNBC to Win

America's 200 Best Small Companies

It takes more than just solid books to make it on Forbes' annual ranking of top up-and-comers. Among the best are California-based Hansen Natural, Pennsylvania-based NutriSystem, Maryland-based Under Armour and Virginia-based VSE.

America's 200 Best Small Companies - Forbes.com

List: Top 200 Small Companies

A Raw Deal: Ticketmaster Service Charges

After paying a 30% to 40% premium over the face value of a ticket, some concert goers have had enough of Ticketmaster's hefty fees.

Raw deal: Ticketmaster service charges - CNNmoney

Also: Live Nation's $120M Deal Lures Madonna, Shows How Far They'll Go to Break Ticketmaster's Lock

How to Deal With a Product Recall

Chances are, you've purchased a product that's been recalled for one reason or another, but with hundreds of recalls every year, you probably don't know about it. Some recalls, ones that affect lots of people or involve contaminated food or well-loved toys, will probably make the evening news. Most others won't. W

hat's a consumer to do?

Dealing with a product recall

Inside the Mind of a Crazy (Rich) Inventor

Scott Jones thinks up more ideas in a month than most folks do in a lifetime. Find out how he makes them pay.

Inside the mind of a crazy (rich) inventor - FSB

Also: Get to Know Jones and His Creative Castle

Tax Procrastinators, Pay Now or Pay the Price

If you've yet to file your 2006 tax return, your time is almost up. October 15 is the final deadline for taxpayers who procrastinated on filing their taxes.

Oct. 15 is the final tax filing deadline -Bankrate

A Tricycle for Grown-Ups that Goes From 0-60 in 4.5 Seconds

A new street-legal trike comes with a V-twin, 106-horsepower motorcycle engine in it, instead of a baseball card stuck between the spokes.

This tricycle for grown-ups goes from 0-60 in 4.5 seconds

Permalink | Email this | Linking Blogs | Comments

ConAgra (CAG) announces massive recall of pot pies

Tom Barlow — 2007-10-12T08:50:00+00:00

Filed under: Bad news, Press releases, ConAgra Foods (CAG)

ConAgra Foods (NYSE:CAG) has announced a massive recall of all varieties of Banquet brand frozen pot pies as well as store brand frozen pot pies sold by Albertson's, Hill Country Fare, Food Lion, Great Value, Kirkwood, Kroger, Meijer and Western Family.The move comes in response to information ConAgra received from state health officials suggesting some of the products may carry the salmonella bacteria. The company has halted pot pie operations at its Marshall, MO. plant while investigations continue to find the source of the contaminant. The store brands recalled include

Albertson's (sold at Albertson's);
Hill Country Fare (sold at HEB);
Food Lion (sold at Food Lion);
Great Value (sold at Wal-Mart);
Kirkwood (sold at Aldi);
Kroger (sold at Kroger);
Meijer (sold at Meijer);
Western Family (now discontinued; previously sold at a variety of small retailers).

The company, in cooperation with the USDA, on Tuesday ordered stores to pull the products from their shelves. For a refund, Customers may discard the contents and send the side panel of the package that contains the UPC code to ConAgra Foods, Dept. BQPP, P.O. Box 3768, Omaha, NE 68103-0768. You can also return the product to the store from which it was purchased for a refund.

Read | Permalink | Email this | Linking Blogs | Comments