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Non-Tech : CAG Conagra The Viagra of Food? -- Ignore unavailable to you. Want to Upgrade?

To: Leo Francis who wrote (1)	8/16/1998 2:42:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 49

Just to respond, I've added also a small amount of CAG @ 23+ level. Still IMO, there are many negatives to/with this stock. Sales levels are basically flat, and pe is high (IMO, for a food manufacturer/distributer). One aspect of the company strategy is to grow by buying other companies -- they just bought Goodmark which makes beef jerky sticks. I see no evidence though that they've been successful in adding value with this strategy of making acquisitions. On the other hand, as you point out, CAG is an offset to investing in high tech; plus they are everywhere, they are huge, and they are not likely to go out of business (IMO) or be usurped by a start-up. The reason I am buying is that I sometimes employ a relative-dividend model to assist me in determining stocks to buy and an entre price. In the past, a good time to buy CAG has been when the dividend yield has been about 2.7%. That time is again now. Having this dividend also cushions and perhaps limits the downside for the stock. I'm not saying we're at the low for CAG (Actually, I'd guess that the stock will hit new lows in this down market we're seeing.), but I am saying I agree with you in buying CAG now. For me, my intent is to add to the position if the stock continues declining. JMO, Paul Senior