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

To: E_K_S who wrote (60582)	3/21/2018 9:35:22 PM
From: Spekulatius	2 Recommendations Recommended By FIFO_kid2 Lance Bredvold Read Replies (2) \| Respond to of 78773

I think food companies have a structural issue, they have overplayed their pricing card too much and are now caught in a situation where private labels that get more and more display shelf prevent them from raising prices at a time when input and labor costs are rising faster. I think they will just have to live with lower profit margins for the foreseeable future. Given that there is no volume growth generally, I don’t see this as a great environment for these stocks, especially since they still aren’t even remotely cheap. Utilities get beaten up by higher interest rates, but regulated utilizes have mechanisms in place to reimburse them for higher interest rates and higher inflation. This should not be a LT problem, so I think these stocks are or will become good buys. KFC‘s book value is almost entirely goodwill and intangibles. I don’t think KFC has volume growth and I think 3G doesn’t have much more costs to cut either.