In early March -- following Target's (NYSE: TGT ) �fourth-quarter 2012 earnings call -- I wrote that while the company has reasonably good long-term opportunities, Target stock was already fairly valued. At the time, Target shares traded for about $64, and I did not expect significant upside from that level in light of the weak U.S. consumer spending environment.
As it turns out, I was half-right. Target had a challenging first quarter, and expects the consumer spending environment to remain weak. Nevertheless, Target stock hit a new all-time high of $71.91 recently, and remains near $69 as of Thursday's close.
Target 10-Year Price Chart, data by YCharts.
While Target has a strong brand and a potentially significant international expansion opportunity, it faces pressure from two directions. Competition from online merchants like Amazon.com (NASDAQ: AMZN ) will lead to pricing pressure in electronics and other hard goods, while other discounters like TJX (NYSE: TJX ) are beating Target at its own "cheap chic" game. At this point, I believe that Target stock is due for a correction, because the stock price has run well ahead of the company's fundamentals.
Kroton Educacional SA (Kroton), formerly Opportunity Officepar Participacoes SA, is a Brazil-based company active in the private education sector. The Company and its subsidiaries are engaged in the management of preschool, elementary, secondary and college preparatory schools, as well as higher, professional and post-graduation education, courses and other related educational activities. In addition, it is involved in the wholesale, retail, distribution, import and export of textbooks, course books, magazines and other publications related to preschool, elementary, secondary and adult education, as well as higher, professional and post-graduation education. Kroton operates in both the On-Campus and Distance Learning business, primarily through its 53 Postsecondary units and 447 active Undergraduate Distance Learning centers, as well as cooperates with approximately 800 Associated Schools in basic education.
Advisors' Opinion: - [By Ney Hayashi]
Anhanguera Educacional Participacoes SA (AEDU3) tumbled after Brazil�� antitrust regulator signaled it may limit the education company�� merger with competitor Kroton Educacional SA. (KROT3) Lojas Renner SA (LREN3) led retailers higher after a report showed Brazil�� industrial production expanded faster than expected in October, easing concern that growth is faltering.
Top 10 Consumer Stocks To Own For 2014: SunOpta Inc (STKL)
SunOpta Inc. ( SunOpta), incorporated on January 1, 2008, is a global company operating businesses focused on a healthy products portfolio that promotes sustainable well-being. With expertise in field to table integration, it specializes in the sourcing, processing and packaging of natural, organic and specialty food products. The Company operates in two business segments: SunOpta Foods and Opta Minerals.
Its core natural and organic food operations focus on value-added grains, fiber and fruit-based product offerings, supported by a global sourcing and supply infrastructure. Its assets, operations and employees are principally located in North America and Europe. It has two non-core holdings: a 66.1% ownership position in Opta Minerals Inc. and its subsidiaries (Opta Minerals), a producer, distributor and recycler of industrial materials; and an 18.7% ownership position in Mascoma Corporation (Mascoma), a biofuels company.
SunOpta Foods
SunOpta Foods operates in the natural, organic and specialty foods product sectors and utilizes a number of integrated business models to bring cost-effective and products to market. It believes these markets will continue to grow as consumers focus on health and wellness. SunOpta Foods consists of four operating segments: Grains and Foods Group, Ingredients Group, Consumer Products Group and International Foods Group .It focuses on three key go-to-market segments: raw materials, value-added ingredients and consumer-packaged products.
The Grains and Foods Group specializes in marketing organic, identity preserved (IP), and non-GMO grains, ingredients, packaged goods and processing services with a core focus on soybean, sunflower and corn products. The Grains and Foods Group works to ensure that it provides its customers with organic, non-GMO and IP specialty grains and seeds by serving as a grower�� supplier of seed; purchaser of the grower�� specialty crops; and processor and packager of a wide range of grains-! based ingredients and consumer-packaged products. It offers a variety of IP, non-GMO and organic seeds and whole grains including soy, corn and sunflower for food applications offering varieties with superior food , raw material sourcing and processing of soy based ingredients in liquid, spray-dried and roasted formats. It offers Grain-based ingredients which utilize non-GMO and organic soy, corn, sunflower and rice; specialty organic functional ingredients, including maltodextrins, tack blends, fiber products; flavor enhancing products, including snack coatings, cheese powders and flavor systems; an line of organic dairy ingredients; and organic soy and sunflower oils. It offers variety of packaged food products for retail and foodservice use and a full range of bulk grain-based animal feed and pet food products.
The Ingredients Group is focused primarily on fiber products and specialty fruit ingredients. It works closely with its customers to identify product formulation, cost and productivity opportunities aimed at transforming raw materials into value-added food ingredient solutions. It offers fibers and brans, including Canadian Harvest Oat Fiber, SunOpta Soy Fiber, SunOpta Rice Fiber, SunOpta Cellulose Fiber and SunOpta Pea Fiber brands of insoluble organic and conventional fiber products, Barley Balance soluble fiber, MultiFiber blends, value-added starch-based texturizers, and a number of custom processed ingredients. It offers SunOpta Specialty Starch products, including OptaGrade and OptaMist. OptaGrade is a natural, starch-based texturizing agent that is used commercially in a variety of dairy products including natural, imitation, and processed cheeses, sour cream, cream cheese, cottage cheese and yogurt. OptaMist is also a starch-based texturizing agent that improves the taste, texture and appearance of dairy products, yogurt, cheese products, and salad dressings.
The Consumer Products Group provides natural and organic consumer packaged food products to global fo! od manufa! cturers, distributors and supermarket chains with a variety of branded and private label products. The Consumer Products Group�� products include Conventional and organic beverage processing and re-sealable pouch filling solutions in a variety of product categories, including shelf stable and refrigerated juices, frozen fruits and vegetables, specialty beverages, vitamin waters, electrolyte waters, energy drinks, soups, baby food, and healthy fruit and vegetable based snacks in flexible pouches. It offers nutritious healthy snacks including natural and organic fruit based snacks in bar, twist, rope and bite size shapes, with the ability to add a variety of ingredients including fiber, plus a range of baked and extruded nutrition bars using a wide variety of ingredients including grains, proteins and other ingredients.
The International Foods Group includes European and North American based operations that source and supply raw material ingredients and trade organic commodities. Its principal operations are located in Amsterdam, the Netherlands and Santa Cruz, California and comprise the global sourcing and supply operations of Tradin Organic, including a business in Dalian, China that supplies food grade organic soybeans, feed, organic sunflower kernels and other grains and distributes certain organic food products, as well as sourcing and processing operations in Ethiopia for organic and specialty coffees and organic and conventional sesame seeds. In addition, the International Foods Group is expanding its integrated processing capabilities with the construction of its value-added organic and specialty cocoa facility in the Netherlands.
SunOpta Foods is subject to a wide range of governmental regulations and policies in various countries and regions where it operates,including the
United States,Canada, the Netherlands, throughout the rest of the EU, China and Ethiopia. These laws, regulations and policies are implemented, as applicable in each jurisdiction, on t! he nation! al, federal, state, provincial and local levels. For example, SunOpta Foods is affected by laws and regulations related to: seed, fertilizer and pesticides; the purchasing, harvesting, transportation and warehousing of grain and other products; the processing, packaging and sale of food, including wholesale operations; and product labelling and marketing, food safety and food defense. SunOpta Foods is also affected by government-sponsored price supports, acreage set aside programs and a number of environmental regulations.
Opta Minerals
Opta Minerals is a vertically integrated provider of custom process optimization solutions and supplier of industrial minerals and silica-free abrasives for use primarily in the steel, foundry, loose abrasive cleaning and municipal water filtration industries. Opta Minerals has offices and production and distribution facilities in Ontario, Quebec, Saskatchewan, Florida, Idaho, Indiana, Louisiana, Maryland, Michigan, New York, Ohio, South Carolina, Texas, Virginia and production locations in Europe in Kosice, Slovakia; Romans, France; and Ermsleben and Rodermark, Germany. Opta Minerals integration of its business acquisitions into its existing operations and financial management systems has created synergies that have increased revenues and profit margins. It has invested in improving plant equipment and infrastructure and has been able to reduce costs while growing production capabilities. It believes that Opta Minerals is well-positioned to expand current operations with modest capital expenditures.
Opta Minerals produces, manufactures, distributes and recycles industrial minerals, silica-free abrasives and specialty sands and other products and services to the foundry, steel, loose abrasive cleaning, roofing granule, marine/bridge cleaning, waterjet cutting, and municipal, recreational and industrial water filtration industries. Its principal product lines include: blends of industrial minerals used primarily in heavy industrial a! pplicatio! ns; silica-free abrasives,and specialty sands, filtration media and other products and services.
Opta Minerals sells industrial mineral products primarily to the foundry and steel industries. Industrial minerals products produced by Opta Minerals include chromites, magnesium blends, lime, nozzle sands, clays, coated sands, petroleum coke, crushed graphite, pre-cast refractory shapes, injection lances, and a wide range of foundry pre-mixes.
Opta Minerals abrasive products are primarily sold into shipbuilding, ship repair, bridge cleaning, waterjet cutting and roofing granule markets. The abrasives produced are free of silica, making them a clean, efficient and recyclable alternative to traditional abrasives. Recycling operations are conducted at Waterdown, Ontario, Norfolk, Virginia and Ermsleben, Germany. This is an important service that Opta Minerals provides to its customers which results in the reuse of materials that would otherwise be sent directly to landfills. Silica-free abrasive products produced by Opta Minerals include BlackBlast, Ultra Blast, EconoBlast, EbonyGrit, Powerblast, Galaxy Garnet, Emerald Creek Garnet, Bengal Bay Garnet and other specialty abrasives.
Opta Minerals also generates revenues from the sale of specialty sands, filtration media and other products and technical services. The silica sands are not sold for use as an abrasive material.Speciality sands and other products and services of Opta Minerals include filtration and industrial sands, garnets for filtration and waterjet cutting, construction sands, golf bunker sand, silica (not sold for loose abrasive applications), colored sand, waterjet cutting replacement parts and components, and technical services.
The industrial minerals industry is characterized by a number of public and private companies that service the bulk of requirements for both the foundry and steel industry. The remaining market requirements are fulfilled by small regionally based companies with limi! ted produ! ct lines that generally focus on local markets.
The silica-free abrasives industry is characterized by a number of regionally-based companies with limited product lines tending to focus on geographically adjacent markets. Their competition varies by product line, customer classification and geographic market. Opta Minerals conducts business throughout North America with a focus on key regions including the Quebec-Detroit corridor, New York, Maryland, Virginia, Georgia, Florida, Louisiana and Texas, all of which are areas of high volume ship repairs and bridge cleaning activities.
The Company competes with Vesuvius Group S.A./N.V., Stollberg Group, SKW Mettalurgie Gmbh, Magnesium Elektron and Prince Minerals.
Advisors' Opinion: - [By Lisa Levin]
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Most Popular 5 Companies Apple Could Buy Instead Of Beats JPMorgan Comments on J.C. Penney In The Run-Up To Q1 Earnings Report 7 Stocks For Your Retirement Portfolio British American Tobacco Looks At Possible M&A Deals With Reynolds, Lorillard Breaking Biotech: Gilead's Phase 2 Study Results Sources Say Deal Between AT&T, DirecTV Could Get Done at $105/Share Related Articles (STKL + CXDC) Stocks Hitting 52-Week Highs Morning Market Movers Stocks - [By Jake L'Ecuyer]
Equities Trading UP
SunOpta (NASDAQ: STKL) shares shot up 12.89 percent to $12.70 after the company reported upbeat Q1 earnings.
Shares of Isis Pharmaceuticals (NASDAQ: ISIS) got a boost, shooting up 10.16 percent to $27.64 after the company reported positive Phase 2 data on ISIS-GCGR Rx in HbA1c in patients with type 2 diabetes.
Top 10 Consumer Stocks To Own For 2014: Helen of Troy Limited(HELE)
Helen of Troy Limited, together with its subsidiaries, engages in the design, development, import, marketing, and distribution of brand-name consumer products primarily in the United States and Canada, as well as in Europe, Asia, and Latin America. It operates in three segments: Personal Care, Housewares, and Healthcare/Home Environment. The Personal Care segment offers hair dryers, straighteners, curling irons, hair setters, shavers, mirrors, hot air brushes, home hair clippers and trimmers, paraffin baths, massage cushions, footbaths, body massagers, brushes, combs, hair accessories, liquid and aerosol hair styling products, men?s fragrances, men?s and women?s antiperspirants and deodorants, liquid and bar soaps, shampoos, conditioners, hair treatments, foot powder, body powder, and skin care products. The Housewares segment provides kitchen tools, cutlery, bar and wine accessories, household cleaning tools, food storage containers, tea kettles, trash cans, storage an d organization products, hand tools, gardening tools, kitchen mitts and trivets, barbeque tools, and rechargeable lighting products, as well as baby and toddler care products, including convertible high chair. The Healthcare/Home Environment segment offers humidifiers, de-humidifiers, vaporizers, thermometers, air purifiers, fans, portable heaters, heating pads, and electronic mosquito traps. The company sells its products primarily through mass merchandisers, drugstore chains, warehouse clubs, home improvement stores, catalogs, grocery stores, specialty stores, beauty supply retailers, e-commerce retailers, wholesalers, and various types of distributors, as well as directly online to end user consumers. Helen of Troy Limited was founded in 1968 and is based in Hamilton, Bermuda.
Advisors' Opinion: Top 10 Consumer Stocks To Own For 2014: Zhongpin Inc.(HOGS)
Zhongpin Inc. engages in the processing and distribution of meat and food products primarily in the People?s Republic of China. The company provides pork and pork products, such as chilled pork, frozen pork, hog by-products and variety meats, and prepared meats; and vegetable and fruit products, including asparagus, sweet corn, broccoli, mushrooms, lima beans, strawberries, and capsicums. It sells its products fast food companies, processing factories, school cafeterias, factory canteens, hotels, army bases, and government departments, as well as directly to retail outlets, including supermarkets. The company also exports its products to Europe, Hong Kong, and other countries in Asia. As of December 31, 2010, it operated 157 showcase stores, 1,072 branded stores, and 2,097 supermarket counter locations. The company is headquartered in Changge City, the People?s Republic of China.
Advisors' Opinion: - [By Dan Caplinger]
Obviously, the big news for Smithfield during the quarter came from Shuanghui International's offer to buy out the company for $34 per share. The $4.7 billion offer has raised some nationalistic concerns, as the Committee on Foreign Investment in the U.S. will have to approve the merger, but Smithfield CEO Larry Pope said last month when the deal was announced that it believes the deal won't have an effect on the company's operations. In fact, the combination of China's largest meat processor and the world's biggest pork producer could produce a formidable opponent to industry rivals. In particular, Chinese pork producer Zhongpin (NASDAQ: HOGS ) will inevitably find itself under pressure if the deal goes through, as Shuanghui puts itself in a stronger competitive position in the industry.
Top 10 Consumer Stocks To Own For 2014: CannaVEST Corp (CANV)
CannaVEST Corp., formerly Foreclosure Solutions, Inc., incorporated on December 9, 2010, is engaged in the business of developing, producing, marketing and selling end consumer products to the nutriceutical industry containing the hemp plant extract, Cannabidoil (CBD). The Company produces raw ingredients for neutraceutical markets. This substance can be used with foods and nutritional supplements for consumer health and wellness benefits, as well as in the pharmaceutical industry. On March 4, 2013, the Company acquired KannaLife Sciences, Inc. On December 31, 2012, the Company acquired certain assets of PhytoSPHERE Systems, LLC (PhytoSPHERE). It also secured the license to the name PhytoSPHERE and PhytoSPHERE Systems for use in the development and commercialization of hemp-based products.
The Company focuses to develop applicable raw ingredients, and provide raw ingredients for the production and development of multiple existing and developing product applications. Its focus is to produce, market and distribute hemp-based consumer products, as well as acquire existing businesses involved in the industrial hemp industries.
Advisors' Opinion: - [By Dan Burrows]
But it doesn’t end there. Investors should run away from all OTC marijuana stocks, including Medical Marijuana (MJNA), Cannabis Science (CBIS), CannaVest (CANV), MediSwipe (MWIP) and GreenGro Technologies (GRNH). As the SEC warns:
Top 10 Consumer Stocks To Own For 2014: Toyota Motor Corp Ltd Ord(TM)
Toyota Motor Corporation engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. It offers conventional engine vehicles, including subcompact and compact cars under the Corolla, Yaris, micropremium iQ, Passo, Ractis, Vitz, and Etios brand names; mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under Toyota brand name; mid-size cars under the Camry, REIZ, Avensis, and Mark X brand names; luxury cars under the Lexus and Crown brands; Century limousine; sports cars under the Scion tC and Lexus brands; sport-utility vehicles under the Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser, and Land Cruiser brands; pickup trucks under the Tacoma and Tundra brands; minivans under the Alphard, Vellfire, Corolla Verso, Wish, Hiace, Regius Ace, Estima, Noah, Voxy, Sienta, Isis, Passo Sette, and the Sienna brands; cabwagons; large, medium, and small trucks; and large, small, and micro-buses. The company also provides hybrid cars under Prius and Crown brands. In addition, it offers a range of financial services comprising retail financing, retail leasing, wholesale financing, and insurance; and credit cards and housing loans. Further, the company designs and manufactures prefabricated housing, as well as involves in the information technology related businesses, such as an e-commerce marketplace known as GAZOO.com; and sales promotions for KDDI communication related products, primarily the au brand. It sells its vehicles in approximately 170 countries and regions, including Japan, North America, Europe, and Asia. The company was founded in 1933 and is headquartered in Toyota City, Japan.
Advisors' Opinion: - [By Daniel Miller]
It's no secret that Detroit's Big Three automakers have been taking back market share in segments that have long been dominated by Toyota (NYSE: TM ) and Honda (NYSE: HMC ) . Ford (NYSE: F ) has especially gained much ground in fuel-efficient sedan segments with its popular Fusion and Focus models. This is great news for domestic auto investors like myself, but of course the No. 1 global sales leader isn't going to sit by idle. With the weakened yen, it gives Toyota and Honda an advantage that enables them to load up features without raising the price per vehicle, or simply take more of each revenue dollar to the bank.
- [By John Rosevear]
But the Fusion's success is a big deal for Ford. After the F-Series and its main rival, General Motors' (NYSE: GM ) Chevy Silverado, which are the country's two best-sellers, the vehicles that top America's sales charts are all midsized sedans. For years now, the two cars to beat have been Toyota's (NYSE: TM ) ubiquitous Camry and Honda's ever-popular Accord.
- [By John Rosevear]
That's not bad -- it's better than the 21-mile electric-only range offered by the plug-in Ford (NYSE: F ) C-Max Energi, and the 11 miles from the plug-in Toyota (NYSE: TM ) Prius.�
Top 10 Consumer Stocks To Own For 2014: Mondelez International Inc (MDLZ)
Mondelez International, Inc. (Mondelez International), formerly Kraft Foods Inc., incorporated on December 7, 2000, is a maker of chocolate, biscuits, gum, candy, coffee and powdered beverages. The Company consists of the global snacking and food brands. Mondelez International's portfolio includes several brands, such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gums. The Company�� products include chocolates, cookies, gums, beverages and crackers. Alpen Gold is a chocolate brand in Russia. Alpen Gold is available in chocolate bars, boxed chocolates and creamy, mouth-watering pralines. Its markets include Poland, Russia and Ukraine. Bubbaloo is a gum brand sold in more than 25 countries and three different continents, including India, Mexico, Portugal and Spain. Belvita are breakfast biscuits made with wholegrain, cereals and fiber. It is sold in Belgium, France, Netherlands, United Kingdom and the United States.
The Cadbury Creme Egg brand is available annually from New Year�� Day to Easter Day. It is sold in Australia, Canada, New Zealand the United Kingdom and the United States. Carte Noire is the coffee brand in France. It is sold in France, Ireland, Russia, Ukraine and the United Kingdom. Chips Ahoy! cookies are chocolate chip cookies packed with chocolate chips. It is sold in Brazil, Canada, China, Ecuador, Mexico, Philippines, Portugal, Puerto Rico, Spain, the United States and Venezuela. Club Social is a cracker in Brazil and Latin America. The newest addition to the Club Social family is Club Social chips in Argentina, available in original, parmesano, and cream and onion flavors. Cote d'Or is a chocolate brand sold in Belgium, Canada, France, Germany, Italy, Middle East, Netherlands, the United Kingdom and the United States.
Cadbury Dairy Milk is a milk chocolate bar sold in 33 countries, including Australia, Canada, India, Ireland, New Zealand and the United Kingdom, and available in more than! 23 varieties, like fruit and nut, WholeNut, Snack, Caramello and Breakaway. Dentyne is a gum to aid in oral hygiene sold in Canada and the United States.
Cadbury Flake is chocolate bars sold in Australia, Egypt, Ireland, New Zealand and the United Kingdom. Gevalia brand offers more than 50 varieties of coffee and 20 choices of tea, and sold in the United States, Denmark, Finland, Sweden and the United States. Grand Mere coffee brand is sold at France. Green & Black�� is a chocolate brand and also includes gift chocolates, ice cream, biscuits and hot beverages. Halls is sold as a cold relief product. Halls is used as a refreshing candy. Halls products are available in more than 26 flavors.
Hollywood gum is a chewing gum in France. Jacobs coffee is sold throughout Europe and the Middle East, and in Austria, Germany, Latvia, Lithuania, Poland, Romania and Ukraine. Jacobs is available in roast and ground, whole beans, soluble crystals, coffee pods and flavored mixes. Kenco coffee is a coffee brand sold in Ireland and the United Kingdom. Lacta is a chocolate in Brazil. It also includes Bis chocolate wafers, Sonho de Valsa pralines and Lacta white chocolate.
LU biscuits are available in 100 countries. Other international brands under the LU name include Petit Dejuener, Mikado, Pepito (Mini Stars), Cracotte, Ourson and Tuc. Milka is a European chocolate. Marabou is a chocolate brand in Sweden. Nabisco�� brands include cookies and crackers. Nabisco 100 Calorie Packs includes 12 varieties, such as Chips Ahoy! Thin Crisps, Oreo Thin Crisps, Lorna Doone Shortbread Cookie Crisps, Ritz Snack Mix, Planters Peanut Butter Cookie Crisps, Kraft Cheese Nips Thin Crisps, Wheat Thins Multigrain Chips, Ritz Chips, Honey Maid Cinnamon Thin Crisps, Mini Teddy Grahams Cinnamon Cubs, Alpha-Bits Mini Cookies and Barnum�� Animals Choco Crackers.
Nutter Butter are sandwich cookies sold in the United States. Nilla wafers include original, reduced-fat and mini wafers. Newtons! are whol! esome snack made with real fruit. It also offers Newtons Fruit Thins and Fruit Crisps. The Natural Confectionery Company is a candy product. Onko offers coffee mixes in cappuccino flavors.
Oreo is a milk favorite cookie. Oreo is available in many flavors and varieties, such as chocolate covered, wafers, pie crusts and soft snack cakes. Premium saltine crackers come in six varieties, including unsalted tops, original, fat-free, low-sodium, soup and oyster and multi-grain. Prince biscuits are available in more than eight countries, including Algeria, Austria, Belgium, China, France, Germany, Netherlands and Spain. Prince biscuits come in creme-filled sandwiches, rolls and chocolate-covered varieties.
Stimorol is a chewing gum brand in Northern Europe, as well as 40 other markets from Greenland to Fiji. Simmenthal is a canned meat in jelly. Simmenthal�� products include beef in jelly with chili and chicken in jelly with curry. Tang is available in more than 30 countries and is a powdered beverage. Tassimo is a hot beverage system, which helps in making coffee, tea, hot chocolate, cappuccino, espresso and lattes. Toblerone is a Swiss chocolate bar made with honey and almond nougat. Trakinas is a creme-filled sandwich cookie.
Trident is a chewing gum brand in the world. Triscuit varieties include original, reduced fat, cheddar, cracked pepper and olive oil, fire roasted tomato and olive oil, garden herb, deli-style rye, roasted garlic, thin crisps, and rosemary and olive oil. Wheat Thins are wheat crackers in a variety of flavors, including sundried tomato and basil, multigrain and parmesan basil.
Advisors' Opinion: - [By Rick Munarriz]
Mondelez (NASDAQ: MDLZ ) isn't too proud to back a rival.
The global food giant behind the Tassimo single-serve coffee platform announced on Monday that it was launching espresso capsules that are compatible with Nestle's (NASDAQOTH: NSRGY ) Nespresso in key European markets. The move is somewhat similar to Starbucks (NASDAQ: SBUX ) expanding its deal with Green Mountain Coffee Roasters (NASDAQ: GMCR ) even after putting out its own single-serve coffee system last year.�
- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
HRL is trading at a premium to all four valuations above. The stock is trading at a 27.6% premium to its calculated fair value of $35.92. HRL did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
HRL earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1928 and has increased its dividend payments for 48 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
HRL earned a Star in this section for its NPV MMA Diff. of the $984. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as HRL has. If HRL grows its dividend at 13.2% per year, it will take 7 years to equal a MMA yielding an estimated 20-year average rate of 3.68%.
Memberships and Peers: HRL is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achiever
- [By WWW.DAILYFINANCE.COM]
Tim Boyle/Bloomberg via Getty Images NORTHFIELD, Ill. -- Kraft Foods Group (KRFT) says that CEO Tony Vernon plans to retire later this month. The company named Chairman John Cahill as his successor. Vernon has served as CEO since the consumer packaged food and beverage company's spinoff from Mondelez International (MDLZ) in October 2012. Before that, he was the company's executive vice president and president of Kraft Foods North America. Kraft's brands include Jell-O, Maxwell House, Oscar Mayer and its namesake, among others.
With the company on solid footing after the spin-off, the time is right for new leadership to fulfill our potential as the industry leader.