Alcoa (NYSE: AA ) , the largest producer of aluminum in the U.S., was once a bellwether with a $40 billion market capitalization whose quarterly performance gave us a real sense of economic conditions at home and abroad.
Today, however, the company’s market cap has plummeted to $8.5 billion, and its chief function as an economic gauge relates to its traditional role as the first component of the Dow Jones Industrial Average to tell us about its quarter. Following the market close on Monday it again performed that function, providing some optimism about what may be in the offing for others that will report behind it.
Alcoa recorded a quarterly loss of $119 million, or $0.11 a share. However, excluding items, the company earned $0.07 per share, a penny higher than the consensus expectation among the analysts who follow it. Total revenue was $5.85 billion, down slightly from the $5.96 billion for the second quarter of 2012.
A portion of the one-time items — $62 million — involved reserves related to Department of Justice and Securities and Exchange Commission investigations into alleged corrupt payments in the sale of alumina in Bahrain. Management noted that a settlement of the Justice Department’s charges could cost another $200 million. Beyond that, in an attempt reduce its costs, Alcoa took charges associated with shuttering a smelter in Italy and closing a pair of lines in Quebec.
Top Food Stocks To Buy For 2014: Carrefour SA (CRERF)
Carrefour SA is a France-based company that is primarily engaged in retail distribution sector. The Company operates a network of hypermarkets, supermarkets, hard discount stores, convenience stores and cash-and-carry outlets and offers e-commerce services. The Company’s hypermarkets named Carrefour offer a range of food and non-food products. Carrefour SA’s hypermarkets, supermarkets and convenience stores are operating under the Carrefour city, Carrefour contact, Carrefour express, 8aHuit, Shopi, Marche Plus, Proxi banners and cash & carry stores are operating under the Promocash banner, which primarily offer food, clothing and household goods, among others. The Company operates in mainland France and French overseas territories, as well as in Europe, Asia, Latin America, North Africa and the Middle East through a network of consolidated and franchised stores, and stores that Carrefour SA runs with partner companies. In January 2014, it acquired 129 convenience stores. Advisors’ Opinion:
- [By Sophia Yan]
Carrefour (CRERF) has also shuttered many stores, and is reported to be exploring a sale of its China and Taiwan businesses.
Hypermarkets — big box stores that combine supermarkets and department stores — first opened up in China’s largest cities over a decade ago. And it’s no wonder companies such as Wal-Mart have been keen to get a slice of the market.
Top Food Stocks To Buy For 2014: Creative Edge Nutrition Inc (FITX)
Creative Edge Nutrition Inc. (CENergy), formerly Laufer Bridge Enterprises Inc, incorporated on January 10, 2008, is engaged in the development, marketing and sales of nutraceuticals and health supplements. The Company’s product categories include lean, energy, essentials, mass, vitamins and apparel. In July 2012, it acquired Innovative Fulfillment Corp. In August 2012, the Company acquired SCD Enterprises, LLC. In September 2012, the Company acquired A-Z-Nutrition.com. In September 2012, the Company acquired Sci-Fit and Nature’s Science product brands. In March 2013, it announced its entrance into the Medical Marijuana Sector through Hemp Protein Powder, Naturals Line, Hemp-plex and Chia-plex. In May 2013, Creative Edge Nutrition Inc acquired Canadian Nutrition Super Stores.
Metabolic Xtreme utilizes the technology and advancement in weight loss technology. Cenergy’s Amino Acid Complex is the supplement for athletes, bodybuilders and anyone who’s trying to live a healthy lifestyle.
- [By Peter Graham]
Small cap stocks CD International Enterprises Inc (OTCMKTS: CDII), Creative Edge Nutrition Inc (OTCMKTS: FITX) and Metrospaces Inc (OTCMKTS: MSPC) have all been the subject of recent as well as past paid for stock promotions. Of course, there is nothing wrong with properly disclosed stock promotions or investor awareness campaigns, but they can and do often backfire on unwary investors and traders alike. With that in mind, will investors and traders come out winners with these small caps or should they just be left to the promoters? Here is a quick reality check:
Top Food Stocks To Buy For 2014: Nash-Finch Company(NAFC)
Nash-Finch Company operates as a wholesale food distributor in the United States. The company?s Military segment distributes grocery products to the United States military commissaries and exchanges in the United States and the District of Columbia, Europe, Puerto Rico, Cuba, the Azores, Egypt, and Bahrain. Its Food Distribution segment sells and distributes various branded and private label grocery products and perishable food products to approximately 1,500 independent retail locations through its 14 distribution centers. This segment also provides various services, including promotional, advertising, and merchandising programs; installation of computerized ordering, receiving, and scanning systems; retail equipment procurement assistance; accounting, budgeting, and payroll contract services; consumer and market research; remodeling and store development services; supply chain through Internet services; and securing existing grocery stores. The company?s Retail segment o perates corporate-owned grocery stores under the Sun Mart, Econofoods, AVANZA, Family Thrift Center, Pick ?n Save, Family Fresh Market, Prairie Market, Saver?s Choice, Wally?s Supermarkets, and Wholesale Food Outlet banners primarily in the states of Colorado, Iowa, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. This segment?s conventional grocery stores offer a range of grocery products and services, such as fresh meat counters, delicatessens, bakeries, eat-in cafes, pharmacies, banks, and floral departments, as well as provide check cashing, fax services, and money transfer services. As of December 31, 2011, the company served 93 retail stores operating under the IGA banner and 50 retail stores under the Food Pride banner; and operated 43 conventional supermarkets, 1 AVANZA grocery store, 1 Wholesale Food Outlet grocery store, and 1 Saver?s Choice store. Nash-Finch Company was founded in 1885 and is based in Minneapolis, Minnesota.
- [By Alex Planes]
Sysco has avoided the margin compression suffered by chicken producers Tyson (NYSE: TSN ) and Cal-Maine Foods (NASDAQ: CALM ) and which was more deeply felt by smaller food-service operator Nash-Finch (NASDAQ: NAFC ) . (It is omitted from this chart due to its drop into outright negative operating margin territory (a decline of roughly 250% in two years.) However, fellow food-service company United Natural Foods (NASDAQ: UNFI ) has actually improved its margins, and restaurant chains both large and small (well, mid-size) have done an admirable job of holding the margin line in the face of rising input costs. So it appears that scale alone isn’t enough to help Sysco outrun the rising costs of its products.
- [By Jeremy Bowman]
What: Shares of Nash-Finch (NASDAQ: NAFC ) and Spartan Stores (NASDAQ: SPTN ) jumped as much as 16% and 15%, respectively, after Spartan said it would buy Nash-Finch, primarily for its military stores.
Top Food Stocks To Buy For 2014: KBB Resources Bhd (KBB)
KBB Resources Berhad is an investment holding company. The Company is engaged in manufacturing and marketing of all types of rice and sago sticks (vermicelli), sago starch and related products. The Company’s product includes Rice Vermicelli, Instant Noodle, Instant Bihun, Laksa and Sago. The Company’s subsidiaries include Kilang Bihun Bersatu Sdn Bhd, which is engaged in Manufacturing and marketing of all types of rice and sago sticks (vermicelli); Rasayang Food Industries Sdn Bhd, which is engaged in manufacturing and trading of beehoon and beehoon laksa; Bersatu Noodles Industries Sdn Bhd, which is engaged in manufacturing and trading of noodles and related products, and Bersatu Biotechnology (Johore) Sdn Bhd, which is engaged in manufacturing and marketing of all types of sago starch and related products. Advisors’ Opinion:
- [By Neha Marwah]
LMC Automotive expects the annualized rate to be 16.1 million, the best in six years. This is a decent improvement from last year’s November, when the industry reported 15.3 million as the adjusted annualized rate. In comparison, Kelley Blue Book (KBB) expects the November 2013 SAAR to be around 15.6 million, while Edmunds.com estimates it to be 15.7 million.
Top Food Stocks To Buy 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’s 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 Unit ed States.
The Cadbury Creme Egg brand is available annually from New Year’s 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, Ne w 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’s 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 an d 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’s 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’s Animals Choco Crackers.
Nutter Butter are sandwich cookies sold in the United States. Nilla w afers 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’s products include beef in jelly with chili and chicken in jelly with curry. Tang is available in mo re 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.
- [By Eric Volkman]
Getty Images/Joe Raedle Nelson Peltz doesn’t want to wash down his Fritos with a Pepsi — at least, not if they’re both sold by the same company. His investment firm, Trian Fund Management, is a major shareholder in PepsiCo (PEP), which owns both of those brands, and he’s pushing for it to separate its beverage business from its snack foods. The proposal cuts at the foundation of PepsiCo’s business strategy, which revolves around the perceived synergies between its liquid offerings and its foodstuffs. Not surprisingly, the company has been swift to reject Peltz’s idea in the strongest possible terms. But before we toss it out with the recycling, let’s take a look to see if the proposal could be beneficial, or if it’s really just so much flat soda. On its website, PepsiCo’s lineup of products appears under the category “Brands You Love.” Indeed, you’d be hard-pressed to fine someone who isn’t a fan of at least one — Pepsi, Tropicana, Lipton, Quaker Oats, Doritos, Fritos, Lay’s and Ruffles, among many others. Synergy Among a Portfolio of Lovable Brands But Peltz argues the familiarity and renown of those products has not translated into meaningful returns lately. In a letter Trian sent PepsiCo, it said that under the reign of current CEO Indra Nooyi, the firm’s growth in earnings per share “has significantly trailed that of peers.” Trian argues that separating the two businesses would eliminate the overhead that comes from a sprawling corporate structure, and make each of the resultant companies leaner and more “entrepreneurial.” A glance at recent history seems to indicate otherwise. Look at the arc of a recent snack food divorcee, Mondelez International (MDLZ). The company, which divested itself of what is now Kraft Foods Group (KRFT) in October 2012, saw fourth-quarter 2013 revenues of just under $9.5 billion. This was slightly lower than the result in the same quarter last year, its first as a stand-alone entity. Attributable net ballooned more than th
- [By MONEYMORNING]
This “Peltzing” is a phenomenon of particular interest now that he has a new top holding…
Mondelez (Nasdaq: MDLZ) Will Get “Peltz’d”
Although not a household name, most Americans would easily recognize Mondelez International Inc.’s (Nasdaq: MDLZ) family of brands, which includes Nabisco, Cadbury, Trident gum, and Tang. The company was spun off last year from Kraft Foods Group Inc. (Nasdaq: KRFT).
- [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 Lauren Pollock]
Mondelez International Inc.(MDLZ) has named Nelson Peltz to its board, a move that follows the activist investor’s claims last year that the snack maker had done too little to cut costs.
Top Food Stocks To Buy For 2014: SuperValu Inc.(SVU)
SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.
- [By Bloomberg]
Matthew Staver/Bloomberg via Getty Images Cerberus Capital Management’s $9 billion deal to merge Safeway (SWY) with Albertsons is a bet that a larger supermarket chain can better fend off an attack on the grocery business by big-box stores and online retailers. Safeway, the No. 2 grocery-store operator in the U.S., agreed Thursday to be acquired by Cerberus’s Albertsons for about $40 a share. The deal will unite two chains with locations across the country — especially in the West — and narrow Kroger’s (KR) lead as the nation’s top supermarket company. Cerberus, a private-equity firm that has spent years investing in the supermarket industry, will use the new company’s heft to combat a growing array of threats. Big-box retailers such as Walmart Stores (WMT) and warehouse clubs are increasingly targeting grocery customers, using their size and breadth of products to attract shoppers. Online food sellers and delivery services, including Amazon.com (AMZN), also have made neighborhood supermarkets less essential than before. “This merger will improve our competitive position,” Safeway Chief Executive Officer Robert Edwards, who will be in charge of the combined company, said Thursday on a conference call. “Our customers will benefit from significant cost saving synergies and a stronger management team.” Safeway shares fell as much as 6.3 percent to $37 in extended trading, reflecting concerns the deal may not close at the current price. The shares had increased 21 percent this year through the close of regular trading Thursday, outpacing the 1.6 percent gain of the Standard & Poor’s 500 Index. Blackhawk Network As part of the agreement, investors will get $32.50 a share in cash, plus stock in Safeway’s gift-card unit Blackhawk Network Holdings (HAWK), according to a statement Thursday. Safeway, based in Pleasanton, Calif., had said last month that it was in talks about a sale of the company. Assuming a diluted share count of about 235 million shares,
- [By Grace L. Williams]
Curious to see what the competition was doing, we found Safeway (SWY) down 0.1% at $31.67, Supervalu (SVU) down 1.4% at $6.25, and Sprouts Farmers Markets (SFM) up 0.9% at $39.60.
Top Food Stocks To Buy For 2014: American Lorain Corp (ALN)
American Lorain Corporation (ALN), incorporated on February 4, 1986, is an integrated food manufacturing company. The Company develops, manufactures and sells food products, which includes chestnut products, convenience foods, including ready-to-cook (RTC) foods, ready-to-eat (RTE) foods and meals ready-to-eat (MRE)), and frozen food products. The Company conducts its production activities in China. Its products are sold in 26 provinces and administrative regions in China and 42 foreign countries. The Company derives its revenues from sales in China, Japan and South Korea. During the year ended December 31, 2011, the Company produced 254 products, including 16 new products in its chestnut and convenience foods segment. During 2011, it discontinued three products in the convenience segment. In February 2014, American Lorain Corp acquired a 51% interest in Athena Group.
The Company manufactures its products in six facilities in China, three of which are located in Junan County, Shandong Province, one in Luotian County, Hubei Province, one in Miyun County, Beijing City and one leased facility in Dongguan, Guandong Province. As of December 31, 2011, the Company manufactured its products using 26 production lines. Each production line is used to produce between 10 and 50 products. The Company operates three product lines: deep-freezing lines, canning lines and convenience food lines. The Company sells its products in all first-tier cities in China, including Beijing, Shanghai, Tianjin and Guangzhou. Its export sales destinations include Asia pacific, primarily Japan, South Korea and Malaysia, but also Singapore, Philippines, Indonesia and Australia; Europe, primarily Belgium and the United Kingdom, but also France, Germany, the Netherlands, Spain, Poland, and Denmark the Middle East, primarily Saudi Arabia, Kuwait and Israel; North America, including the United States and Canada.
ALN owns 100% of International Lorain Hold ing, Inc. (ILH). ILH wholly owns two Chinese operating subsi! diaries, Luotian Green Foodstuff Co., Ltd. (Luotian Lorain) and Junan Hongrun Foodstuff Co., Ltd. (Junan Hongrun), directly. Junan Hongrun, in turn, wholly owns Dongguan Green Foodstuff Co., Ltd. (Dongguan Lorain). In addition, together with Junan Hongrun, ILH wholly owns Beijing Green Foodstuff Co., Ltd. (Beijing Lorain), Shandong Greenpia Foodstuff Co., Ltd. (Shandong Greenpia), and owns approximately 80% of Shandong Green Foodstuff Co., Ltd. (Shandong Lorain) (Shandong Economic Development Investment Co. Ltd. owns approximately 20%).
During 2011, the Company produced 57 processed chestnut products. During 2011, this segment contributed 51.7% of its total revenues. The Company’s products include its aerated open-bottom chestnuts, which are chestnuts packaged with nitrogen; sweetheart chestnuts, which are sweet preserved chestnuts; chestnuts in syrup, and golden chestnut kernels.
The Com pany’s convenience food products include RTC food products, RTE food products and MRE food products. During 2011, the Company’s RTCs included beef and lamb products, and its RTEs included bean products and pickle products. The Company’s self heating MREs are primarily for military use since no cooking device or other ingredients are needed other than water. The Company also introduced microwavable MREs for civilian uses, such as camping, traveling and other situations. The Company produces various MREs based on Chinese cuisine, which include its pork with garlic sauce over rice and kungpao chicken with rice. The Company produced 138 convenience food products, during 2011, including 14 new products, such as filled buns and fried sweet potato.
Frozen Food Products
The Company produces a variety of frozen foods, including frozen vegetables, frozen fruits, frozen fish, and frozen meats. The Company produced 63 frozen food products in 2011. The Company’s frozen foods included, during 2011, were frozen asparagus a! nd frozen! corn.
The Company competes with Hebei Liyuan, Foodwell Corporation, Weifang Langdong Food Co. Ltd., Yuyao Hongji Food Co. Ltd. and Yantai Pengshun Food Co. Ltd.
- [By James E. Brumley]
Truth be told, were it just today’s 11% pop from American Lorain Corporation (NYSEMKT:ALN), it might not even be worth mentioning. It’s not just today’s 11% rally from ALN, though, that’s made this stock so interesting. It’s everything that’s happened up until this point that may mean American Lorain deserves a spot at the top of your watchlist, if not in your portfolio.