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General Mills, Inc. Message Board

  • cheeseburgernpairadice cheeseburgernpairadice Aug 23, 2008 8:41 AM Flag

    a little light on info here!

    no discussion of the economic effects of the coming recession on this company.

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    • GIS is recession-proof. Long GIS & use optionglobe and their daily option trades!

    • This is a company that will continue to do well regardless of the economy. Most of its products are in the non-discretionary category (you might be willing to give up your daily Starbucks or cut back on eating out, but you're still going to buy groceries.) Its brands are spread across the board. And as commodities get more expensive, it reduces portion size of packaging to compensate for higher costs. Net effect is more sales of units (my teenaged sons can finish a box of cereal in one sitting now.)

      • 1 Reply to newvooriche
      • Regardless of the fundamentals, this one's due for a correction. Take a look back at the beginning of June.

        The clues are:

        1. High volume at an all-time top (Ask yourself, are the big boys buying at an all-time top?) If the answer is "YES", then better buy some more shares.

        2. The Bollinger Band width is narrowing. That means that liquidity in this stock is diminishing. It's essentially putting in a blow-off top. When the BB width widens, the stock will probably head south.

        3. RSI is diverging negatively, as it did in late May before the correction down.

        4. Consumer staple stocks have been pounded lately by the media as "safe-havens" and don't forget that terrific dividend. U R are in Peter Lynch heaven.

        If you are basing your "investment" on cereal consumption, you're going to get whipsawed. CIS is an "equity" not the cereal itself. A very tough distinction for savvy consumer staple stock investors.

        Enjoy your Wheaties.

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