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Flowers Foods, Inc. Message Board

  • rodandlaverne rodandlaverne Mar 22, 2013 4:40 PM Flag

    Surprised at price

    Yes FLO has made a considerable investment in Hostess products and bakeries but they won't contribute to the bottom line till at least the fall and then will build over time justifying current price. I think the price is about $4.00 in front of its self at this time. FLO is trading at a forward PE of at least 20 - I don't think we can hold here into the spring. As for a split - well not at this PE, they will wait for earnings to grow into this price before they risk putting price back into the mid teens. FLO is a solid investment and a good custodian of your investment dollars - just a little in front of its self on this reasoned run.. JMHO

    Sentiment: Hold

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    • You may be right about the price; however, it has been driven by higher estimates for both 2013 and 1014. In the last 90 days 2013 consensus has gone form $1.16 to $1.34 per share with high estimate of $1.48. The 2014 estimate over 90 days went from $1.34 to $1.52 per share with a high estimate of $1.70.

      I agree about the high PE and I actually sold some shares and diversified into McCormick Spices, But I will keep the rest for the long pull as I expect down the road another 2 for 3 split.

      They have done some amazing things with Tasty and the bread brands bought in New England. I used to live in NJ and was within the Tasty distribution area. I know see it here in the Indianapolis area. Since I have a lot of relatives in NJ I kept my vacation property in the Poconos and load up on Tasty when I go out there. A friend of mine who lives in South Jersey believes that their Individual size Lemon Pie is the best on the market. It is truely amazing how they are expanding this brand. Also see my Zack's post.

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