Brad Holt's  Instablog

Brad Holt
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Brad Holt is a successful day trader and inter-day trader. He works to make a profit for the week by trading index futures and selective stocks and options. He has been studying the markets for the past 10 years and successfully trades his own account. Brad concentrates on the technology sector... More
My company:
BCH Investments LLC
  • A Sweet Stock - HSY not melting away 0 comments
    Jan 7, 2011 3:58 PM | about stocks: HSY
    There have been multiple upgrades for Hershey (NYSE:HSY).  That got me to looking at the stock and the reasons why.  Historically Hershey goes up this time of year due to what I call the Valentine affect. Where candy stocks go up during Valentines.  There have been some other developments with Hershey as well.

    Janney Upgraded ST to a BUY.   citing increased marketing and cost cutting.  With the Launch of the Mini - Reese’s launch at the CES is a direct reflection of this.  

    HSY is ranked as a safe stock to own; with a 2.8 % dividend and I believe it is undervalued at it current price.of $48.10.  With all the marketing and the Cost Cutting, the stock could see a swing upward in the coming months.   

    A good way to play this Stock would be a buy write. Buy the Stock and sell an out of the money call option about 90 days out.  you collect the premium and have a good stock through the first quarter of the year.  

    Disclosure: I am long HSY.
    Stocks: HSY
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