Gordon Reid General Mills GIS-N SELL Oct 03, 2018

Their outlook is dimming as the wider economy weakens, and they're shifting to more value-oriented products for pets. He thought pet food was a more reliable product category but now this is can be slippery.

They report Wednesday; can they turn things around after sales faltered last quarter? Their high-end pet food business has stalled and Zoetis revealed that pet spending is slowing.

It reports Wednesday. He suspects shares have been out of fears of the new weight-loss drugs eating into their snack-food sales. That said, every package food company that has reported has reported no slowdown, and those stocks rallied. GIS also had a good pet food business.

They report Wednesday. They just sold their North American yogurt business for $2.1 billion, while their snacks and pet food visions are strong. The stock is a bargain now.

Was upgraded today based on accelerating pet food sales. It reports Wednesday. He thinks that the incoming Health & Human Services Secretary, Robert Kennedy, will promote healthy eating, which clashes with GM's money-making sugary cereals.

Pays a 4% yield and is cheap at these prices. He thinks the health secretary is dead set against the weight-loss drugs, so will benefit GIS.

They make hugely popular cereals, very sugary, and so they could be a target of RFK Jr.'s health department. It yields 4.5%, the same as the 10-year T-bond, but that's still not enough to offset regulatory risk.

They put up weak numbers and shares slid 5% today. Consumer packaged goods are sector to avoid.

At 13X forward earnings for a staples company and with a long-term outlook, we think an investor will do fine with General Mills (GIS). However, there is not much growth at the business currently and we think an investor can wait a bit for some better positive momentum before getting too serious with with a name like this.
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