COMMENT

Shares fell this year, because many felt its food was too expensive. This morning, they reported disappointing same-store sales, a big sales miss and earnings miss, but shares jumped nearly 4% today. Why? The rally is broadening beyond tech/AI. Also, the street expected MCD's bad numbers, and they introduce $5 Value Meals.

BUY

Last Friday, the CEO walked about areas that could see cost cuts and many segments that could grow faster. MMM is part of the rally broadening out of tech.

BUY

It just raised its forecast, released better numbers than expected and revealed a slew of new, promising drugs. Shares have jumped. The new CEO knocked out of the park the latest numbers, instead of missing numbers as so often before.

BUY

It beat earnings today and rallied 11%. The CEO issued a sunny forecast.

BUY

They make high-end fixtures for housing. Released great numbers last Friday. Perfect as interest rates decline which fuels housing.

BUY

Activist Elliott Partners can improve things here. He's bullish. Pays a 2.5% dividend yield.

BUY ON WEAKNESS

They just reported their second heinous quarter in a row. Shares fell 30% the past week and 48% this year.  It used to be a top packaged food company. Trouble began a year ago with the new weight-loss drugs taking off, so it impacted LW's french fries and other fast-potato foods. Their April report was a disaster and now earnings are down 40% year over year. That said, this is an opportunity. It trades at 12.5x forward PE. The great potato gut will come to an end eventually.

WEAK BUY

It has 480 locations across North America, Europe and Asia. They acquire small businesses in a very fragmented industry (cold storage) and quickly became the dominant player. They command scale and are riding the wave of online food sales. Also, the younger consumer wants healthy food, which cold storage protects. They've invested heavily in cloud and tech to operate more efficiently. Revenues jumped from $3.7 billion in 2021 to  $5.34 billion in 2023, but their growth ground to a halt to start this year. Puzzling. Revenue was -0.4% YOY. Also, all these acquisitions have left them with a heavy debt. Pays an okay 2% dividend yield. It's the largest IPO so far this year, but is using most of the capital to pay down debt. Overall, he's modestly positive but wants to know where future growth is.

COMMENT

Trades at 20x this year FFO estimate at a 3% dividend. It's the #2 in cold storage

WEAK BUY

Trades at 22.8x this year FFO estimate at a 3.1% dividend. The PE is reasonable.

DON'T BUY

If the CEO scares him, he won't be on board. Shares have done nothing for a few years, but you get paid the dividend. Too risky.

DON'T BUY

The dividend is too high. Avoid.

COMMENT

Last week, they reported a moderate beat, but cut guidance, so shares have been choppy since.

PARTIAL BUY

A good solar play that had outpaced its peers. Partial buy or hold. Don't sell.

DON'T BUY

The problem is that shares have gone up so much that people are selling to buy small/mid-caps. Shares could get even cheaper.