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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Wallace Rivers who wrote (35072)8/10/2009 10:08:27 PM
From: Arthur Radley  Read Replies (2) | Respond to of 78667
 
Wallace,
I concede that point about Sodexo, however, the fact that they are strictly in this aspect of the food business is why I suggested one invest in SYY.

Think of it as the literal case of following the 'food chain' when you compare Sodexo to (SYY). One of the main sources of rev for Sodexo are the sport venues. Take a look at the attendance numbers of the professional baseball games...(As I write this, I'm watching the Houston Astros vs Florida Marlins........and you catch shoot a cannon off and not hit a soul in the seats) Look at the various offers being made by sport venues..........here in Houston they literally are giving away tickets and free food just to get people in the staduim) Look at the data just release by the Cleveland Indians as to their loss of revenue.......they are literally going broke. Look at the Pittsburg Pirates....they have traded all their key players trying to cut their expenses...fans just aren't showing up to eat food at sport arenas. Go back and study the history of a Canadian company that held the contract at many of the major sports arenas.....a company that 'went' by the name.....Center Plate, that had their US operations based in South Carolina.

I should have been clearer in my original post.......IMO if one is going to invest their money in the food industry......doesn't logic tell you that in the chain of delivery to the end customer that the supplier is going to benefit before the seller to the eater of the food? The time to invest in Sodexo, is when you see the increasing number of trucks being loaded at the SYY distribution centers.

I hope this clarifies my position on my original post. (:>) I just concluded a 4,500 mile vacation drive in which I attended facilities that utilizes Sodexo services.......and let me tell you.....the waiting lines were not long!



To: Wallace Rivers who wrote (35072)8/10/2009 10:17:06 PM
From: Arthur Radley  Respond to of 78667
 
Wallace,
Let me clarify my point about the reference to CenterPlate by pointing out that a few years ago this stock was trading in the double digits and was paying double digit dividend rate....

Stamford, CT – January 27, 2009 – Centerplate, Inc. (AMEX:CVP; TSX:
CVP: un) today announced the completion of its previously announced merger
with an affiliate of Kohlberg & Company, L.L.C.
The unit holders of Centerplate voted to approve the proposed merger
agreement that the company entered into on September 18, 2008 and amended
on December 23, 2008 at a special meeting held today, January 27, 2009.
Holders of 50.65% of Centerplate’s outstanding voting shares voted for the
merger agreement. As a result of the transaction, each issued and outstanding
share of Centerplate common stock was cancelled and converted automatically
into the right to receive $0.01 in cash.