B&G Foods Inc. Message Board
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Good Entry level?
First let the news of increased dividend and the news of this acquisition settle down a week or so.
The old "good buy" range was under $17 particularly in the $16.50-16.60 range ... only time will tell what the new range will be but let the pps settle down before attempting to define such.
BGS historically has $.50 to 1.50 dips that have nothing to do with the company ... suspect its small group of shorts playing games, but these dips have always been temporary and are where better entry points are gained.
Luck
LTBH-
Depending on your objectives, I don't know if there is ever a bad time to get into BGS. I like their company very much, their dividends have been pretty good for years, and I don't know of too many better companies to go with.
As a friend said, "People gotta eat!"
My two cents.- 2 Replies to OldGuyNorth
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Wait until it breaks thru $23.
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Thanks for the reply. I agree that the company is in a good sector, and will likely not be affected by downturns. Plus, I don't have a food stock in my portfolio and this one looks very good.
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PS
For completeness for any newer investors ... almost assuredly there will soon be a secondary offering which could cause a push to the $17 area and near $17 would, IMO, be a could entry for a starter position ... and I would always recommend incremental purchases layering in a third position each purchase over a period of time.
Remember that we will probably have another budget stalemate in a few weeks as well as ongoing EU issues which could drive down US stock prices.
Luck
LTBH- 2 Replies to ltbhdollars
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Thanks for the info.
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Why are you so certain there will be a secondary?
The EBITDA from this new transaction is about 2x the interest costs of it so they should be able to do exactly what they said in the announcement Friday.
"B&G Foods expects to fund the acquisition with additional debt and has received financing commitments for senior secured debt financing from Credit Suisse, Barclays Bank PLC and Royal Bank of Canada in an amount sufficient to fund the purchase price and refinance the Company’s existing senior secured credit facilities."
Best of luck...
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