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Sysco Corporation Message Board

  • born2win_2000 born2win_2000 Nov 2, 2008 9:12 PM Flag

    Under $30 is a bargain

    time to buy/add shares here. SYY spits out a nice dividend and has a payout ratio of 45%, which fits my criteria. Fallen oil will reduce transportation cost. I see $35-$37 by April 2009, for this blue chip. Little downside risk here.

    Good luck to all longs.

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    • A mixed quarter at best. The economy has to be taking its toll on dine out, especially at the higher and mid end.
      Again, inflation covered their sales number:
      Sales for the first quarter grew five percent over the same period last year. Food cost inflation, as estimated by the change in Sysco's cost of goods, was 8.3 percent for the quarter.
      This probably means that shipment of stock in units did not equal the sales price: 8.3 inflation to 5% sales. Not a good thing.
      They continued to spend a bundle financing special deals to management. Maybe they should hire a new investment manager?
      But they still came close to the magic number, for whatever that is worth.
      I bet they beat the heck out of their sales force! They need to beat them harder this quarter.

      Still, SYY shows why it is the class of the lot in foodservice sales.
      More after the call.

37.48-0.19(-0.50%)May 26 4:01 PMEDT