Published: November 10, 2016
Whole Foods Market (WFM:US) has generated a loyal group of health-conscious customers over the years who are willing to spend a little or a lot extra for their groceries. According to Ed Devitt, the shareholders of WFM have been loyal as well, a little or a lot too much. The stock trades at a ...
Published: May 09, 2016
Once among the most touted stocks of the decade, Chipotle Mexican Grill (CMG:US) has been under intense scrutiny after a series of food-borne illness outbreaks in its restaurants in late 2015. When stocks take a steep plunge, the value investor in all of us begins to ask “is now the time to buy?”...
Published: February 19, 2015
Most beer industry experts believe that we are approaching the “last round” of major consolidation. The most attractive, sizeable growth asset in beer is SABMiller (“SAB”) given its deep ties into emerging markets and industry leading local beers. Molson Coors (“TAP”) and SAB have co-operated Mil...
Published: January 02, 2014
<strong>Long on General Mills (GIS:US)</strong>
Contributor: Carl Aschenbrenner, Formerly at Stonebridge Capital Management, Inc.
Current Price: $49.40.
Target Price: $60.00.
Expected Return: 21.0%.
Timeframe: 2+ years.
Elevator Pitch: Healthy mix of snack foods favored by aging demographic...
Published: December 12, 2013
Trading at nearly 40X EPS, the Market is extrapolating BWLD's historical growth rates far into the future. We believe the company's growth algorithm is fundamentally broken and the stock is poised for multiple compression as EPS growth decelerates. The Street believes, even if the core concept de...
Published: July 18, 2013
Starboard sent a 16-page letter to Smithfield's board in June, stating the case for taking apart the pork giant. That communication also disclosed the size of Starboard's holdings in Smithfield. Notably, though, Starboard didn't reject a marriage with Shuanghui International.
Published: June 13, 2013
The special committee should reject the recent take-private offer from Dole’s CEO, Murdock, of $12.00/share for the business. Dole has previously highlighted $500mm ($5.56/share) of non-core assets, and there have been three consecutive weak years in the core banana business. 46% of Murdock’s tak...
Published: March 07, 2013
Dean Foods (DF) is spinning off the remainder of White Wave (WWAV), its soy milk division, in the next few months. DF currently owns 86.7% of WWAV. If you subtract out the value of the WWAV business, the DF stub has an implied P/E of 7.43. Once the spin-off is complete, the Dean Foods milk busine...
Published: February 08, 2013
That fact that a $30 billion market cap company with an admirable track record of success lowered its guidance twice within a few weeks raised a red flag. It shows the business has near-zero visibility and no control of its fate in its country of operation. To add insult to injury, the overly opt...
Published: January 04, 2013
While SAM should continue to have solid y/y growth in the 1H 2013, they will no longer have the distribution tailwind in the back half of the year. Its core beer portfolio is flat y/y at best. Boston Beer, also known by its core brand name Sam Adams, is riding the US craft beer wave sending its s...
Published: November 21, 2012
A favorite catalyst of value investors is the so-called Octogenarian effect. This strategy involves identifying a business run by an individual in their 80s without an obvious heir apparent. More often than not, this type of business is usually acquired sooner rather than later. In my view, the O...
Published: November 06, 2012
YUM’s China segment is becoming less correlated to Chinese exports and more aligned with disposable income trends. With the Chinese government's mandate to continue urbanizing its rural population, YUM's Chinese customer base grows and has higher disposable income.
Published: October 23, 2012
Given the trend toward healthier foods, Annie's stock has clearly caught this wave following the success of Hain's, Whole Foods, Chipotle, etc. The stock now trades at a level where I believe it is an attractive short.
Published: June 04, 2012
The stock has been dumped by investors because of its "perceived" exposure to Greece, where the company is headquartered. In reality, Greece represents a mere 6% of revenues and around 7% of income. The company has a very diversified portfolio of markets and whatever happens to Greece, CCH will c...
Published: September 11, 2012
<strong>Jack in the Box (Nasdaq: JACK)--Long
Red Robin Gourmet Burgers (Nasdaq: RRGB)--Short</strong>
<strong>Jack in the Box (Nasdaq: JACK)--Long</strong>
Current Price: $23.86
Target Price: $46.32
Source: Hedge Fund. New York, NY.
Quick Pitch: With the sale of 332 company-owned stores...