Capitalize on In Home Dining: JM Smucker

October 30, 2008

You wake up in the morning and put the bread in the toaster; it pops up nice and warm; and your good old buddy JM Smucker strawberry jelly (or blueberry if you prefer) is waiting there to be spread over the toast and be enjoyed by everyone in the family. During tough economic times, families tend to stay at home and eat, whether it be for be for breakfast, lunch or dinner, the Consumer Staples sector will tend to benefit from this trend. As unemployment continues to rise, the housing market continues to deteriorate and people have less disposable income, families inclination to stay at home will become even stronger. The J.M. Smucker Company [SJM: 39.30, -1.70 (-4.15%)] is a perfect example of a company that will thrive in this type of environment. Read more

Investment Opportunities in Diageo

October 17, 2008

During a time of great uncertainty in the stock market, investors are looking to minimize the risk in their portfolios. With a flight to the safe haven well underway, it is tough to look past the position of strength Diageo PLC [DEO: 53.68, -3.72 (-6.48%)] has maintained throughout this latest economic downturn. Diageo is the main player in the global wine and spirits business carrying a number of the world’s most popular brands among which are Smirnoff vodka, Johnnie Walker scotch whiskey, Captain Morgan rum, and Crown Royal Canadian whiskey. Read more

Kroger: Your Local Grocer

September 24, 2008

After what has quite possibly been the craziest week in Wall Street history, many people are trying to figure out where to go in this market. While this may or may not be the bottom, it seems like Wall Street has gotten what it has asked for from the government: a solution for all the banks’ problems with bad debt, as opposed to the government just bailing out one firm at a time. Whether or not this was a good Read more

Wal-Mart: The Best Play in This Market

September 8, 2008

Finding solid investing ideas in this market has not been the easiest thing. With the housing market and credit markets still unraveling, companies and consumers alike are finding themselves strapped for cash, as they try to reverse years of highly leveraged balance sheets and bad habits in dealing with their money. Volatile markets have scared off even some of the riskiest investors as 300 point swings in the Read more

Procter & Gamble Earnings Review

August 5, 2008

Procter & Gamble [PG: 61.85, -1.97 (-3.09%)] reported fourth quarter earnings today, which highlighted exactly why staples have been one of the best performing sectors in the S&P 500 so far this year. With a global slowdown looking more and more likely as each day passes, consumer staples stocks have shown this earnings season that they can sell their products in even the toughest of economic environments. Profit rose 33% for the diversified home care and personal products maker, as soaring energy and commodity costs were offset by price increases. The company Read more

Price Increases Not Hurting Profits for Staples Companies

August 2, 2008

With most of the earnings season complete, it looks like Consumer Staples fared pretty well with over 70% posting upside earnings surprises. One of the key issues that analysts were concerned with for Staples companies before earnings was how the rise in commodity prices and input costs would affect these stable companies. Read more

Kraft & Tyson Paint Mixed Picture For Food Producers

July 28, 2008

Today is a big day for the food producing sub-sector of Consumer Staples as some of the largest players in the market came out with earnings this morning. Kraft [KFT: 27.05, -0.99 (-3.53%)], Tyson Foods [TSN: 4.80, -0.31 (-6.07%)] and WM Wrigley Jr. Co [WWY: 0.00, N/A (N/A)], all released quarterly earnings today, Read more

Pepsico Q2 2008 Earnings Roundup

July 23, 2008

Pepsico [PEP: 53.10, -1.98 (-3.59%)] reported Q2 earnings of $1.05 a share on $10.95B in revenue. This quarter marked 14% revenue growth and 11% EPS growth, with the company confirming their full year guidance. This beat analysts estimates of $1.02  of EPS per share and $10.52B in revenue. Total volume was up 5%, with strong results Read more

Discount Retailers Feeling the Pressure?

July 23, 2008

Inflation and rising energy prices are starting to seep through the economy, even affecting discount retailers to an extent. Costco Wholesale Corporation [COST: 48.78, -3.34 (-6.41%)] released a statement today stating that they would miss Q4 EPS estimates of $1 per share by a large amount. They noted that this was due to inflation, particularly rising energy costs. Most would think this would be good for Read more

Coca-Cola: An Interesting Value Play

July 21, 2008

Coca-Cola [KO: 43.83, -0.61 (-1.37%)] is the world’s largest beverage manufacturing company, serving over 200 countries with non-alcoholic beverages. The stock has taken a downturn after earnings because of low increase in sales volume. It is important to note that these concerns may be overblown as the company still posted profits ahead of Wall Street estimates and part of their volume miss can be attributed to one time events, such as the earthquake in China and unseasonable Read more

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