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Stockchase Opinions

Michael Hakes - CFA, MBADanoneBN.PABUYDec 07, 2022

Compared to Nestle or Unilever, he prefers Danone, #1 in both dairy and plant-based, cheaper. Over the last decade, Danone has maintained its #1 position but has lost market share, stock's not up at all, slow to innovate. Real catalyst is new CEO who's made sweeping changes that will boost top and bottom line growth.
N/A

Stock price when the opinion was issued

$62.24

As of Aug 28, 2024. Market Open.

food processing
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BUY
New management team that has energizing the company. Current dividend yield is strong. Company has strong plans going forward. Expecting growth from the company. Private label business will grow in soft economy.
PAST TOP PICK
(A Top Pick Jul 22/20, Down 2%) Disappointing so far. Compelling value. Sluggish execution. Management has been replaced. Great opportunity here, little downside risk, growing dividend, expanding margins. He's bullish.
TOP PICK
A yogurt play that just added a lactose intolerant product. Now a diversified business model. They have a strong dividend and growing earnings. The dividend is rock solid. An excellent investment trading a cheap price. Yield 3.48% (Analysts’ price target is $68.46)
PAST TOP PICK
(A Top Pick Nov 08/18, Up 20%) Longer term, if you think the economy will soften, it is a good place to be. There could be more upside. It's a good choice to sleep well at night with a nice dividend. It's a quality company at a discount still.
TOP PICK
The Euro play story. They have a new CEO. Dairy is traditionally a local business. It is on sale from a Canadian investor perspective. (Analysts’ price target is $75.44)
BUY

Ran into a few sharp objects. Got embroiled in China regarding a product. Also, had some operational issues in Europe. Great company and is exposed to some decent markets.

PAST TOP PICK
(Top Pick Dec 17/09, Up 11.62%) Still holds, still likes and would buy at these prices.
TOP PICK
(A Top Pick Dec 17/09. Up 7.63%.) French exchange. Good growth in developed markets and very strong growth in emerging markets. Made an acquisition in Russia that will cement their dairy business there. Strong balance sheet. Reasonably priced. Move to health and wellness will be a big beneficiary to them.
PAST TOP PICK
(Top Pick Oct 7/09, Up 7.2%) Still Likes it.
TOP PICK
French exchange. One of the quality growth stocks in Europe. Very strong free cash flow. Fast-growing businesses such as probiotic yogurt and medical nutritional are the highest margins for them. Expects to see 200-300 basis points improvement in margins with up to 10% growth in sales. 13 X earnings.
TOP PICK
Dairy company but has done a great job in the medical and nutritional aspect of things. By moving to medical/nutritional they are able to expand margins. Have consistently been able to grow cash flow. Balance sheet is not as good as he would like because of acquisitions but they are focused on that.
TOP PICK
Likes the nutritional food business. Well run company. Hasn't done particularly well in the recovery but is probably because it did very well last year when everything else was falling apart. Growing sales at about 2%, which normally would be about 7% and he thinks they get back up to that. Growth is coming from high-margin stuff.