MGP Ingredients Or Facebook: You Say Which The Better Choice

Summary

• The choice at hand is not a long-term answer. Instead, it is a first step in building a long-term portfolio result, step by nearer-term step.
• That approach is advised because far more reliable forecasts of what rewards and risks may be coming are available for the near-term than multi-year guesses about uncertain futures.
• We will look now at what can be seen for these two choices, over the same limited prospective holding periods where comparable knowledgeable information is available.
• We will have at hand what was produced by prior forecasts with payoff~penalty prospects like today’s, displayed for easy comparison.
• Several dimensions of investment satisfactions will be presented, so you the reader will have the ability to fit your choice to your own preferences.

Investment Thesis

The investment thesis of this article is that the most important reason for investing in any stock is its potential for portfolio wealth-building and that requires informed forecasts of its likely future price. We have legal access to the near-future price-range expectations of the most experienced, best-resourced players in the equity investment community as a starting point.

Why Read This Report?

This is an analysis of how the prices of specific securities are likely to change in the next 3-4 months, based on the way major investment organizations ("institutional investors" or "big-$" funds) have perceived those prospects and made multi-million-dollar trade changes of holdings in their multi-billion-dollar portfolios. That rationale is explained further in my SA blog's article "Why Read This Report?"

The report is not a study of years-plus effects of economics, technology, politics, or competitive use of resources on earnings per share of securities. Such studies by others are embedded in the big-$-funds stock price forecasts, prompting their volume-trade transaction orders. Analyses of such influences are covered as helpful background by other SA contributors.

This is a comparison of present-day opportunities for capital gain among many related alternative choices for wealth accumulation as seen by investors with the capital and human resources sufficient to cause such price changes.

Investors know Facebook, but what is MGP Ingredients?

MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits and specialty wheat proteins and starch food ingredients. It operates in two segments, Distillery Products and Ingredient Solutions. The Distillery Products segment provides food grade alcohol for beverage applications that include bourbon and rye whiskeys, as well as grain neutral spirits, including vodka and gin; and food grade industrial alcohol, which is used as an ingredient in foods, personal care products, cleaning solutions, pharmaceuticals, and various other products. This segment also provides fuel grade alcohol for blending with gasoline; distillery co-products, such as distillers feed

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in MGPI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Peter Way and generations of the Way Family are long-term providers of perspective information, earlier helping professional investors and now individual investors, discriminate between wealth-building opportunities in individual stocks and ETFs. We do not manage money for others outside of the family but do provide pro bono consulting for a limited number of not-for-profit organizations. We firmly believe investors need to maintain skin in their game by actively initiating commitment choices of capital and time investments in their personal portfolios. So, our information presents for D-I-Y investor guidance what the arguably best-informed professional investors are thinking. Their insights, revealed through their own self-protective hedging actions, tell what they believe is most likely to happen to the prices of specific issues in the coming weeks and months. Evidences of how such prior forecasts have worked out are routinely provided in the SA blog of my name.