Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Natural/Health Food Industry Stocks -- Ignore unavailable to you. Want to Upgrade?

To: organicgerry who wrote (285)	4/6/1999 3:52:00 PM
From: marcher	Read Replies (1) \| Respond to of 337

Tuesday April 6, 3:22 pm Eastern Time Food stocks slide after Gillette profit warning CHICAGO, April 6 (Reuters) - Shares of several food processors fell on Tuesday, after an earnings warning from shaving giant Gillette Co. (NYSE:G - news) sent that company's stock tumbling, analysts said. ''I think what we are seeing here is investors fleeing the consumer area,'' said Nomi Ghez, food industry analyst with Goldman Sachs. ''We've had earnings pre-announcements from several very visible companies, like Coca-Cola Co. (NYSE:KO - news) and now Gillette. There is a feeling among investors that something is wrong in consumer-land.'' Gillette's shares fell as analysts cut their ratings following the Boston-based company's warning that it would miss first-quarter earnings estimates by a penny. Last month, soft drink giant Coca-Cola warned of sluggish global sales. ''Gillette is a bellwether for consumer non-durables,'' said William Leach, packaged food analyst with Donaldson, Lufkin & Jenrette. Gillette's earnings warning ''reinforces the problem that many food companies have, which is slow top-line growth.'' Shares of ConAgra Inc. (NYSE:CAG - news), the maker of Healthy Choice foods and Wesson oil, were among the hardest hit in the food industry, falling 1-10/16 to 23-5/16 in afternoon New York Stock Exchange Trading. Shares of chocolate maker Hershey Foods Corp. (NYSE:HSY - news) were off 2-15/16 at 52-1/4, and leading cereal maker Kellogg Co.'s (NYSE:K - news ) stock was down 1-3/8 at 32-5/8. A spokesman for Hershey declined to comment on the stock activity, citing company policy. A ConAgra spokeswoman also declined comment. A Kellogg spokesman was not immediately available to comment. ''There is such sensitivity right now that stocks are reacting out of proportion,'' Goldman Sachs' Ghez said. ''What you are seeing is investors going toward what has been working, which is financials and technology.''