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

To: Elroy who wrote (61759)	2/26/2019 9:30:07 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

The risk reward for CPG companies right more doesn’t look good to me. The companies can’t grow their business, debt seem high across the sector and the valuation at 10x+ EV/EBITDA doesn’t look great to me for a secular challenged business. I’d rather buy an industrial at 10x EV/EBITDA with some cyclicality but no secular business challenges.

To: Elroy who wrote (61759)	2/27/2019 9:22:18 AM
From: E_K_S	Read Replies (3) \| Respond to of 78704

Re: BGS earnings show little to no growth and now 2019-2020 growth has been cut a bit. All of the implied value from GN model all gone w/ lower EPS. Still good they are getting debt down but next move may/could be a dividend cut. They are generating good FCF and EBITDA, but that will be need to buy/add new product brands. There was some concern their next move would be a large acquisition and then saddle themselfs w/ more debt. Not good. FWIW, they do have some good brands that will have modest organic growth but the entire sector is selling off so you can Buy the the best in the industry (like SJM) at much lower prices now. Will hold my shares and see what the new CEO can bring to the table. EKS