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

To: bruwin who wrote (61942)	5/8/2019 3:20:29 PM
From: E_K_S	2 Recommendations Recommended By richardred toccodolce Read Replies (1) \| Respond to of 78673

Bruwin - You are looking in the past. The complete sector view has changed as evidenced by the write downs KHC had to take. BGS is restructuring their product portfolio get a huge price/premium for their leading brands and decided to take it (at the expense of lower revenues). The challenge is to get a clean predictable run rate on revenues, use their stronger balance sheet and future FCF to finance acquisitions (accretive) that will allow future growth (in revenues and EPS). KHC is 26x the size of BGS so BGS has the advantage to pick and choose the right brand/product at the right price/fit for their portfolio. Many of these brands (in the past) carry a huge Goodwill component (KHC,GIS and even BGS took huge write downs to Goodwill recently). I would like to see the expansion of their spice products which carry high margins and may/could be seen as healthy products in the age of processed foods. The CEO is smart, has some wiggle room now w/ their balance sheet to build a legacy product portfolio into a next generation portfolio. It's simple and it's all about the future and building value. It's like an old building w/ a good foundation and structure. Do the remodel update the furnace/plumbing/roof and you have a great new investment. This is what I see BGS is doing. I have been wrong in the past and will be wrong in the future but this (to me) is exactly what investing is (buy undervalued assets w/ good management to make a so/so company a much better & profitable company). I have put in my bet, have another GTC Buy set at $20.26/share (a 15% add) which if filled will get me to a full position or about a 2.5% portfolio position (bring it into my top 10). I expect a $30-$40 price in 5 years but more importantly looking for expanding margins, higher growth and a few accretive 'value/growth' acquisition by our CEO. To me downside small . . get paid a div while you wait and even that may/could be cut and/or eliminated. EKS

To: bruwin who wrote (61942)	5/15/2019 9:33:43 AM
From: E_K_S	Read Replies (1) \| Respond to of 78673

B&G Foods Acquires Clabber Girl Corporation BusinessWire - 1 hour ago B&G Foods, Inc. (NYSE:BGS) announced that effective today it has acquired the Clabber Girl Corporation, a leader in baking products, including baking powder, baking soda and corn starch, from Hulman & Company. In addition to ClabberGirl, the number one retail baking powder brand, Clabber Girl Corporation's product offerings include the Rumford, Davis, Hearth Club and Royal brands of retail baking powder, baking soda and corn starch, and the Royal brand of foodservice dessert mixes. B&G Foods expects the acquisition to be immediately accretive to earnings per share and free cash flow and projects that the acquired business will generate approximately $70 to $75 million of net sales on an annualized basis. "We are pleased to announce the addition of Clabber Girl to our portfolio of brands," stated Kenneth G. Romanzi, President and Chief Executive Officer of B&G Foods. "This acquisition is consistent with our longstanding acquisition strategy of targeting well-established brands with defensible market positions and strong cash flow at reasonable purchase price multiples. Clabber Girl Corporation is the number one manufacturer of branded retail baking powder and also holds leadership positions in baking soda and corn starch." B&G Foods funded the acquisition and related fees and expenses with cash on hand and revolving loans under its existing credit facility. --------------------------------------------------------- CEO execuiting his plan . .Note that the deal is accretive to earnings. Good Investing EKS