Jan. 21, 2014, 10:08 AM
- Dean Foods (DF +3.8%) moves higher after a positive mention in Barron's over the weekend.
- Shares of the food company could rise more than 30% in a buyout scenario, writes David Englander.
- He thinks management has positioned the company in a manner that will make it easier for an acquirer to launch an attractive bid.
- Dean Foods trades at a soft multiple of 5.7X 2014 earnings due in part to concerns over raw milk prices.
Jan. 8, 2014, 7:04 AM
Jan. 7, 2014, 6:38 AM
- Despite lagging the S&P 500, food stocks had a strong year in 2013. We believe investors should remain selective in their allocation of capital by placing a greater emphasis on stock picking.
- Overall, in terms of themes for our packaged food/beverage coverage universe in 2014, we expect sluggish but gradually improving food volume trends, increased promotional intensity (funded by easing commodity costs and retailers fighting for traffic share) and a relatively active M&A environment.
- Accordingly, we prefer companies with solid organic growth prospects [Green Mountain Coffee Roasters (GMCR); Amira Nature Foods (ANFI); J & J Snack Foods Corp. (JJSF)], exposure to declining commodity costs [GMCR; Hormel Foods (HRL); The J.M. Smucker Company (SJM); Flowers Foods, Inc. (FLO)], exposure to company specific margin enhancing opportunities [FLO; GMCR, ConAgra Foods (CAG)] and ability to benefit from accretive M&A (SJM, JJSF and CAG).
- On the non-branded part of our coverage universe, Ingredion (INGR) is our top pick followed by Tyson Foods (TSN) and Dean Foods (DF).
Dec. 9, 2013, 7:03 AM
Dec. 4, 2013, 2:29 PM
- If Congress doesn't get around to passing a new farm bill before the end of the year the USDA will be forced to support higher prices for dairy farmers which would create a disruption up and down the food industry.
- Milk producers could benefit from the changes mandated by the 1949 farm bill - while food sellers could see profits pinched with consumers unlikely to absorb the full amount of price hikes.
- Most analysts think Congress will get its act together in time, but the risk of a stalemate exists.
- Related stocks: SJM, DF, NSRGY, WWAV, LWAY, DNKN, MCD, SBUX, KO, GIS.
Nov. 12, 2013, 9:59 AM
- Margin worries at Dean Foods (DF -7.6%) is affecting sentiment over a number of other packaged foods companies in early trading.
- Though the company warned specifically on the dairy commodity environment, its drop in guidance on Q4 "challenges" looks a bit broader.
- Underperformers: KRFT -0.7%, SJM -1.0%, HAIN -1.0%, CAG -0.5%, CPB -1.0%, TSN -0.6%.
Nov. 12, 2013, 9:26 AM| Comment!
Nov. 12, 2013, 8:11 AM
Nov. 12, 2013, 12:05 AM
Nov. 11, 2013, 5:30 PM
Nov. 7, 2013, 10:00 AM
- The FDA says it will propose measures to dramatically limit artificial trans fats from products sold in the U.S.
- Many varieties of packaged foods and frozen foods contain trans fats as well as items commonly sold at restaurants.
- Cutting the fat: Nestle (NSRGY), PepsiCo (PEP), Tyson Foods (TSN), Mondelez International (MDLZ), Unilever (UL), General Mills (GIS), Kraft Foods (KRFT), Kellogg (K), Dean Foods (DF), Campbell Soup (CPB), Hormel (HRL), Hershey (HSY), Pilgrims Pride (PPC),
Oct. 21, 2013, 10:11 AM
- Dean Foods (DF +2.1%) shares climb after BMO Capital upgrades the stock to Outperform from Perform and bumps its PT a dollar to $23.
- The firm believes raw milk costs will peak in Nov. as "lower feed costs, favorable weather, healthy inventory levels, and high farm-gate milk prices lead to record-high milk production" while the company's production volumes will bottom out this quarter and improve sequentially due to new distribution wins and "a likely improvement in overall fluid milk volumes."
- BMO likes Dean's strategic transition to cost leadership, seeing the move as a driver of profitability improvements.
- The firm also thinks Dean could attract a new investor base through "value-creating actions" after it lowered its leverage by spinning off WhiteWave.
Sep. 3, 2013, 6:40 AM| Comment!
Aug. 26, 2013, 5:54 PM| Comment!
Aug. 14, 2013, 5:12 PM
- Dean Foods (DF) announces a 1-for-2 reverse stock split in an effort to boost the dairy giant's share price.
- Earnings have suffered as the company has been pressured by higher raw milk prices and increased competition.
- The split will reduce the float to around 94.3M shares from about 188.5M, and should be effective after the close of trading on August 26.
- Shares +1.4% AH.
Aug. 8, 2013, 11:32 AM| Comment!
DF vs. ETF Alternatives
Dean Foods Co process and distribute fluid milk and other dairy products, including ice cream, ice cream mix and cultured products. It also produces and distributes TruMoo, a reformulated flavored milk, as well as juices, teas, and bottled water.
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