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

To: Paul Senior who wrote (40726)	3/24/2011 12:38:36 PM
From: E_K_S	Respond to of 78702

Hi Paul - CAG is one I have been watching since you and Grommit started positions in late 2010. they reported earnings today. Re: ConAgra Foods, Inc. (CAG) ConAgra Foods 3rd-quarter net income falls on rising costs; revenue increases on price hikes finance.yahoo.com From the article:"...Earnings from continuing operations rose to 50 cents per share from 49 cents per share. The results beat the forecast of analysts surveyed by FactSet, who were looking for 46 cents per share...." <clip> "...The commercial foods unit reported its revenue rose to $1.07 billion from $996.1 million, helped by higher selling prices in its flour milling operations. The segment also benefited from volume growth for its Lamb Weston specialty potato products. Rodkin said the division, which comprises 34 percent of ConAgra's total third-quarter revenue, will concentrate on high-margin products such as sweet potatoes...." ----------------------------------------------------- The company is working on cutting costs including their supply chain expenses. Not too sure they can do much more on shaving expenses in the future. PE is coming down now around 12. Dividend is still pretty good at 4%. I missed this one in the $21.00/share range (11/2010) and if I had it I would probably continue to hold with a tight stop. Stock up almost 2% on earnings but I fear if the company continues to pass on commodity price increases they may impact their future revenue growth. High inflation could sink their ship. It's probably a better sector to hold than the supermarkets (ie WMT or SVU). Too bad I missed this one 10% lower. EKS