InvestIdeas

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CAMPBELL SOUP CONTINUES ITS UPTREND

Today's chart shows that one of our core investment themes is working again, even during these volatile times.

The idea is to own capital-efficient businesses – particularly ones that dominate their market. These companies have long-lived products and strong customer loyalty.

They operate consistent, global businesses. And they will continue to pay their dividends and make share buybacks whether the euro disintegrates, whether the U.S. dollar is devalued, etc.

One example of these elite stocks is Campbell Soup Company (CPB). This $17 billion food producer has been a staple of consistency over the years, and continues to outperform today.

Campbell's sells more than 60% of the world's packaged soup, making it incredibly difficult to compete with. As Extreme Value editor Dan Ferris says, there's no substitute for being No. 1.

As you can see from the chart below, being a capital-efficient industry leader works. CPB shares are up 30% over the past two years.

More important, the stock continues to perform well despite the recent market selloff, recently hitting a new 52-week high. It's a winning formula for safe, reliable returns.

Source: Daily Wealth

Capital-efficient food maker Campbell Soup jumps more than 10% in the past six weeks.

not vested

Campbell Soup Dives 6.3% on Worse Than Expected Quarterly Results, Profit Forecast

Campbell Soup Company announced the annual results ended 31 July 2016.

Profit slid 8.9% yearly to US$960 million, with EPS of US$1.81.

During the period, sales dipped 1.5% yearly to US$7.961 billion.

For the fourth quarter, the company recorded a loss of US$37 million. Excluding special items, EPS equaled US46 cents, worse than market expectation of US50 cents.

Shares in the company plunged 6.3% at close last night to US$56.91.

Source: AAStocks Financial News

not vested

America’s Favorite Soup is in Trouble – and This is the Best Time to Profit

by TOM GENTILE

For the first time in over two years, Campbell Soup Company, (NYSE: CPB) neither met nor beat its earnings expectations, reporting earnings of $0.46 (down from the $0.51 estimate).

Although its reported revenue of $1.69 billion actually met estimates, Campbell’s adjusted gross margin came in lower at 32.4%, breaking its five-quarter streak of posting adjusted gross margin expansion.

Source: Power Profit Trades

http://powerprofittrades.com/2016/09/am ... -to-profit

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Campbell Soup Company (NYSE:CPB) shares are getting slammed hard on Friday, capping a near 20% decline over the past two weeks in the wake of disappointing earnings and weak guidance.

The company reported earnings of 52 cents per share — 3 cents below estimates — on a 1.4% drop in revenues.

Guidance missed estimates badly, with management looking for earnings of $3.04 to $3.11 per share vs. the $3.20 analysts were expecting.

Management cited a tough environment for the packaged foods industry “due to shifting demographics, changing consumer preferences for food, the adoption of new shopping behaviors and the dynamic retailer landscape.”

RBC Capital Markets analysts lowered their price target on CPB, warning that without dramatic cost reductions or large-scale M&A, the company will have a hard time returning to its sales and earnings growth goals.

Source: Investor place

mot vested

Stocks to Short: Campbell’s Soup (CPB)

As I’ve written several times in the past, I don’t particularly like the CPG (consumer packaged goods) space. Within that space, Campbell Soup Company (NYSE:CPB) looks like one of the weakest offerings – and an attractive short on its own.

Indeed, 12% of CPB’s float already is sold short. And with the stock down by one-third from 2016 levels, the shorts have been right so far. I don’t think that trade is over yet, either.

Campbell’s is the most indebted among major food companies. Investors were unimpressed with the company’s expensive acquisition of Snyder’s-Lance, and soup sales are falling.

CPB may look cheap on an EPS basis, but including the debt its EV/EBITDA multiple still is in line with faster-growing companies. And that debt could pressure the stock if Campbell’s can’t execute a turnaround over the next couple of quarters.

On top of all of that, Campbell’s aluminum prices are going to rise – as the company itself has said. And with little room for the company to raise prices in a brutal grocery space, that could further pressure margins.

More broadly, Campbell Soup hardly seems a good business at the moment. It’s a low-growth giant at a time when smaller, nimbler companies are winning in food. All told, CPB still looks like a short.

And to hedge that short, investors can go long J M Smucker Co (NYSE:SJM), which has a few of the same category risks and much, much better rewards.

Source: Investor Place

Campbell Soup cuts annual profit forecast as costs rise
https://www.reuters.com/business/campbe ... 021-06-09/

Breaking Down the Subtle Changes of Campbell's Soup Can Redesign | WSJ
https://m.youtube.com/watch?v=wbsfV4HK0ss

Campbell's VP Admits Soup Is "S**t For F**king Poor People" With "Chicken... From A 3D-Printer"
https://www.zerohedge.com/medical/campb ... 3d-printer