GregT

Take a Helping of Sysco

Good call on Sysco. They are clearly the 800 pound gorilla and will be able to take more market share from competitors during the slowdown. Even though earnings growth may slow a bit, investors should keep in mind that gaining market share from competitors is easier during the tough times. Think the hills in the Tour de France - painful for everyone, but it allows the truly strong to increase their lead.

Sysco: A Surprising Inflation Hedge

Good points about Sysco. However, even though Sysco might indeed be a good inflation hedge, the comparison that was made against gold mining companies was totally without merit. Sysco's stock price increased because the company grew - not because Sysco somehow magically benefits from inflation. Comparing Sysco to gold mining companies is truly apples to oranges and mostly depends upon the time range which is selected.

Q4: Sysco Sings a Sweet Tune

Long term - great company and great possible investment.

Short term - headwinds of inflation and economic slowdown will have a huge impact on SYY's customers. All the rev growth this past quarter was due to inflation. They did a very commendable job of growing EPS by improving efficiencies, but you can't "save yourself to prosperity." If our inflation/slow growth/housing problem lasts another year, there is a good chance SYY will have an ugly quarter. That will be the right time to buy the stock IMHO.