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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.290-3.6%Dec 1 4:30 PM EST

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To: richardred who wrote (5305)8/1/2019 7:13:53 PM
From: E_K_S  Read Replies (2) of 6518
Very nice Buy on SFM. Stock was +7% on their earnings. Looking at UNFI at/near their lows could post positive earnings as they work through their acquisition. They distribute to SFM & Whole Foods, the natural/organic high quality foods.

BGS posted better than expected earnings and revenues along w/ positive forward guidance.

Maybe the food depression is over and we have seen the lows. BGS gross profit would have been $96.8 million, or 26.0% of net sales (if you back out the Clabber acquisition one time costs).

If UNFI can achieve those margins getting efficiencies w/ their new distribution center, they s/d see their stock higher.


Newell Rubbermaid Inc (NWL) is my other large turnaround position. Just announced a new CEO and Ichan (and son who is on the BOD) have very large holdings. NWL going through a massive product portfolio re-position, upgrading products to new innovative items. Along w/ that, have made significant upgrades/investments in their distribution center, fulfillment (integrating state-of-the-art) online processing using robots.

It is/was necessary to make those investments but will still have a hard time competing w/ AMZN so they need niche/unique products in their product mix. Dividend very good at 6.5% but that may/could get cut by new CEO depending on what sort of additional house cleaning needs to be done.

Made some Buys today to add to my underwater position.

I need to drill down into where items are manufactured and see if part of their restructure was to bring much of that back into the US. Could be a net positive if get that in the US and avoid those tariffs.

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