I am bewildered and befuddled by the "term sheet" offer and with the "goings on" with Chinese stocks in general. The offer seems to make no sense given the current share price. (Begs the question "How smart are these Smart Soho guys anyway?")
What's the deal? I have no problem finding super cheap cereal on sale in the store, but K, POST, and even GIS are really expensive stocks right now. I guess hopes of consolidation justify the stock prices but does consolidation solve the industry pricing problem? I would short these stocks but I am a gutless wonder right now.
Maybe it's not a game changer, but the press release from yesterday was something I wasn't expecting until late September, i.e., news!! For the company it sounds like a decent accomplishment and something they should be proud of, especially given the fact that Frankiln is a relative small fry.
(And I looked on Wikipedia for some info on Kigali. It seems like they have some pretty temperate weather there, no extreme cold of heat throughout the year. Perfect bus riding weather. And if you don't have an internet hookup just get on the bus and get connected thru the free WiFi ).
And don't forget, 9 out of 10 bean counters agree that if you have been unsuccessful in your efforts to change the definition of "milk chocolate" and you actually have to use cocoa butter, then just substitute PGPR for some of that cocoa butter and the consumer won't notice. (And I think PGPR is made with some kind of bean so what bean counter wouldn't like that!)
HSY is proof that most stocks are kinda expensive right now and that ZIRP has created beaucoup asset inflation. Mediocre products and profits are currently not enough to take down stock prices but someday quality will matter again.