Tuesday
Mar282006
Sticking With Conagra (CAG)
March 28, 2006 at 6:22 PM
Well I'm keeping my position in Conagra (CAG) .
Technical:
I liked the way it bounced back from last week's bad news -that a good technical sign.
Insider buying:
The CEO also bought 75,000 share and even if that's for show it's agood sign when you see any CEO buying his own stock. (at the timeof this posting yahoo finance still didn't have the CEO transaction butstill one by an Executive VP). (Yahoo finance insider transaction for CAG)
Value:
From a value point of view, even with the worst earnings, the shares are still well priced at $20.00 a share.
Merger:
With a market capitalization of $10.8 billion the company is digestible bymany of the large multinational food conglomerates like Nestle orUnilever. That creates a nice floor to the price of CAG.
Disclosure:
I am at full allocation of Conagra in the portfolio.
I also own Unilever and Nestle at half allocations.
Technical:
I liked the way it bounced back from last week's bad news -that a good technical sign.
Insider buying:
The CEO also bought 75,000 share and even if that's for show it's agood sign when you see any CEO buying his own stock. (at the timeof this posting yahoo finance still didn't have the CEO transaction butstill one by an Executive VP). (Yahoo finance insider transaction for CAG)
Value:
From a value point of view, even with the worst earnings, the shares are still well priced at $20.00 a share.
Merger:
With a market capitalization of $10.8 billion the company is digestible bymany of the large multinational food conglomerates like Nestle orUnilever. That creates a nice floor to the price of CAG.
Disclosure:
I am at full allocation of Conagra in the portfolio.
I also own Unilever and Nestle at half allocations.
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