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Non-Tech : Income Investing

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From: RJCogburn64	7/23/2019 11:55:04 AM
	3 Recommendations Recommended By E_K_S Jerrymac walterenergy Read Replies (3) of 52052

B&G Foods (BGS) has dropped in price to the point where the yield is now 10%, so it is certainly priced as if a dividend cut of some magnitude is coming. I have a large position and have for several years. Yes, BGS is in a tough space (packaged foods, some frozen vis Green Giant) but they are profitable, have decent free cash flow, enough to buy back shares, and a large portfolio of brands. I don't like the large debt, though. So what to make of this? The "does somebody know something?" question that retail investors sometimes struggle with I suppose is always possible but I discount that. Institutions and funds own 90% of the shares so they move the price, not guys like me. The short interest is around 40% of the shares outstanding which certainly hurts the share price but makes me wonder how that plays. The large owners must be the ones lending the shares that are shorted but then they must be willing to hold the shares and not sell out. Maybe the next quarterly results will help explain things one way or another. I am not selling now. FWIW

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