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

To: E_K_S who wrote (60773)	5/3/2018 7:53:09 PM
From: Paul Senior	1 Recommendation Recommended By longz Read Replies (1) \| Respond to of 78757

OT:uhoh--spilled-offee---ke-oard-is-kaput

To: E_K_S who wrote (60773)	5/4/2018 7:28:29 AM
From: Spekulatius	1 Recommendation Recommended By E_K_S Read Replies (1) \| Respond to of 78757

Re BGS- looks like the results were a bit better than expected. I read through the CC transcriptm in seekingalpha and a few things were noticeable: 1) Their debt reduction is field by inventory reductions. It looks like they bumped up their inventories late last year and now reduce it by about $100M total. However this is going to be a one off factor this year 2) Gross margins are still falling YoY, but they absorbed some costs by reducing SG&A 3) They have $175M in FCF (according to management and their CC) in 2018 and $125M in dividend expense, which leaves net retained cash at $50M/ year. This is hardly enough to make a dent in their $2B debt pile Maybe the negative trend in consumer food has played out for the most part. I am looking at HAIN, which is big in organic foods, and Whole Foods (AMZN) being a large customer. They are also on track to improve their margins according to forecast, but it looks like nobody believes them. Whole Foods will probably become a more difficult customer to deal with going forward.