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Flowers Foods, Inc. Message Board

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    • why KBL has dropped 3 points in the last 10 days.
      The Market always seems to know about these sort of
      things before the regular people find out.

      sure they know what they're doing but it seems they
      paid a pretty high price - $250MM for $200MM in sales.
      That equates to a "price to sales" ratio of 1.25.
      Keebler's own p/s ratio is .86 and FLO's is only .38. I
      checked a few others and many quality food stocks are
      trading at a price to sales ratio of .5.

      This move
      would also seem to put the kabosh on KBL buying FLO or
      anyone else buying KBL. Certainly makes it much more
      expensive to do so, plus, who would want to buy a company
      while they are trying to merge a new company?

      certainly could be wrong but I would guess this would knock
      a few more points off of KBL in the next few days.
      FLO would follow it down, though not point for point.
      Anyway, just my guess and we'll find out in about 12

      I'm not suggesting this is a bad strategic move by
      Keebler; not enough info to make such a call at this
      point. It's just that normally the acquirer suffers for
      a while in these deals.


      • 1 Reply to RetiredPaperman
      • Is this what happens when I have one of those
        rare days when it's virtually impossibe to check on
        all of you??

        Don't rule out the food
        consolidation wild card; we don't know what potential suitors
        are thinking and, with most food stocks selling at or
        near multi-year lows, I wouldn't put the "kabosh" on
        anything just yet.

        Also, I own a large amount of
        FLO with no intention of selling at this level; with
        my luck, I'd sell and then find out my exit point
        was at or near the bottom. It's still only January
        with a long year ahead!

        If a recession begins
        later in the year because of higher interest rates, FLO
        is going to look palatable for many more investors.

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