Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Investing in Agribusiness: Will This Major Food Company Be Bought Out?

Commodities / Agricultural Commodities Jul 19, 2011 - 04:10 PM GMT

By: Eric_McWhinnie

Commodities

Ralcorp Holdings Inc. (NYSE:RAH) produces a variety of store brand foods that are sold under the individual labels of various grocery, mass merchandise, and drug store retailers. Their products include everything from Post Raisin Brand to NutCracker Mixed Nuts. In May, we discussed how Ralcorp’s share price had been sizzling, but wondered if it could maintain its rally. Recently, Ralcorp has been back in the news, but are shares popping?


In May, shares of Ralcorp popped from $70 to $87 in just a few days, because two buyout bids by ConAgra (NYSE:CAG) became public. Shares remained near $90 for most of May, but have gradually drifted lower to $86. Last Thursday, Ralcorp announced that it’s planning to spin off its Post Foods cereal business, after failing to find a buyer for it. Ralcorp acquired Post Cereals in 2008, but the spin off could come within the next 4 to 6 months. The company looks to be positioning itself to attract other bidders for Post Foods, which should help Ralcorp fend off more potential buyout offers. BB&T Corp (NYSE:BBT) predicts the spinoff move will increase the number of bidders and increase shareholder value. Although Post Cereals accounted for a quarter of Ralcorp’s sales last year, shares could receive another boost from higher buyout offers.

The chart below shows the gradual decline of Ralcorp’s stock as the ConAgra buyout offers lose their buzz.

Investors still holding Ralcorp shares should be hoping for more buyout offers. Last Friday, Ralcorp announced reduced guidance. The company now expects to earn between $1.13 to $1.18 per share for the third quarter. This is a decrease from previous expectations of $1.37 per share. Ralcorp also dropped its full year guidance range to $5.20 -$5.35, down from $5.45 to $5.55. Ralcorp competes with other big name companies such as General Mills (NYSE:GIS) and Kellogg (NYSE:K). The company also competes with Kraft (NYSE:KFT), which was just named one of the top five stocks of 2011 by WSJ.

Investors looking for agricultural plays should also consider Market Vectors Ag ETF (NYSE:MOO), PowerShares DB Agricultural (NYSE:DBA), and ELEMENTS MLCX Grains Index (NYSE:GRU).

For more analysis on our support levels and ranges for gold and silver, consider a free 14-day trial to our acclaimed Gold & Silver Investment Newsletter.

Disclosure: No positions.

By Eric_McWhinnie

http://wallstcheatsheet.com

Wall St. Cheat Sheet : Only days after the S&P 500 crashed to the depths of hell at 666, the Hoffman brothers launched Wall St. Cheat Sheet: one of the fastest growing financial media sites on the web. Like a samurai, our mission is to cut through the bull and bear shit with extraordinary insights, a fresh voice, and razor-sharp wit. We provide the highest quality education and information for active investors, financial professionals, and entrepreneurs.

© 2011 Copyright Eric McWhinnie - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules