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Pepsico topped earnings and revenue expectations in its third quarter earnings report. Yahoo Finance's Brian Sozzi had the chance to speak with Hugh Johnston, CFO of PepsiCo, to hear what's behind behind the pop, Sozzi joins On The Move to discuss.
The alternative-meat industry could be entering a new phase where bullish Beyond Meat investors have to digest wins from new rivals.
Berkshire Hathaway has been a major market laggard in one of the greatest bull markets, leading a longtime fan of Warren Buffett to dump his holdings.
It was only a few years ago that Altria (NYSE:MO) stock was being feted as one of the best-performing stocks. With the Altria stock price down over 40% from 2017 peaks, today's story seems very different.Source: Kristi Blokhin / Shutterstock.com Indeed, as InvestorPlace's Will Ashworth noted on this site in 2016, $10,000 invested in Altria's predecessor in 1968 would have been worth a stunning $66 million. And at the time Ashworth wrote, there was little reason to see positive returns reversing. Altria had pressure on its business from lower smoking rates, but it was still printing cash -- and returning that cash to shareholders.Yet MO stock has been in a steady, if not entirely consistent, downtrend for over two years now. The big issue of late has been the company's stake in Juul, for which it paid $12.8 billion late last year. Increasing reports of lung diseases tied to "vaping" have led to negative press. And investors believe state-level regulation could significantly impact Juul's business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut those risks seem potentially overblown, particularly in the context of an attractive valuation. Increased regulation usually benefits incumbent leaders, as Altria's own history shows. And the Altria stock price seems to incorporate something close to a worst-case scenario to begin with. It may take some fortitude, but MO stock looks like a buy here. MO Stock and the Vaping IssueMore than a few analysts have noted the irony of Altria stock selling off in response to political pressure. As an excellent article on Seeking Alpha noted, MO stock has been here before.In the late 1990s, stock of what was then Philip Morris fell over 60%. The catalyst was the enormous settlement with state attorneys general, which would cost over $200 billion. By early 2000, MO stock was at $5. * 10 Hot Stocks Staging Huge Reversals Of course, that price proved to be an enormous buying opportunity. By 2016, including dividends, MO had returned over 12,000%. The reason was relatively simple: Regulation was a positive for Philip Morris (Altria), not a negative. The end of advertising cemented the market share of a leading brand like Marlboro. Higher minimum prices did little to accelerate smoking declines.The broad argument for Juul is if vaping fears lead to increased regulation, the same basic outcome will hold. E-cigarettes are a massively fragmented business. But Juul has clearly dominant market share, well ahead of even a brand like blu from Imperial Brands (OTCMKTS:IMBBY). Higher regulations -- or higher taxes -- will push out smaller, sub-scale operators. They will leave Juul at the top of the market with vastly lower advertising spending needed to maintain that competitive position. Should Vapes Be Regulated?Of course, that all presumes regulation will arrive at the federal level. That's not guaranteed to be the case -- and likely shouldn't be the case.After all, e-cigarettes clearly have moved some adult smokers from more dangerous combustible versions. And the cases of lung disease reported so far seem to come from vaping THC, not nicotine. More specifically, they appear to be a result of vaping oils used in "black market" THC-based products.Common sense might suggest that established companies shouldn't be regulated based on the illnesses. After all, the existence of, say, Jack Daniel's manufacturer Brown-Forman (NYSE:BF.A, NYSE:BF.B) prevents the risk of deleterious effects from moonshine. The same should be true for nicotine vaping. Incidentally, this also should be true for a company like Cronos (NASDAQ:CRON), in which Altria has invested and which has developed a research and development center for safe THC vaping.Of course, given the traditional behavior of politicians and regulators, common sense well may not apply. But it does seem unlikely that e-cigarettes will be outright banned. There's a potential "Goldilocks" scenario here. Regulators do just enough to thin the market, but not enough to significantly depress demand. The Case for Altria StockAfter the selloff, Altria stock now trades at a historically low multiple of barely 10 times 2019 consensus earnings per share estimates. Its dividend yield touched an all-time high in recent weeks, clearing 8% before retreating to a current 7.9%.Both multiples suggest that the core business is flat-lining -- and that the investment in Juul has been essentially lit on fire. Neither seems to be the case. Operating income still is growing. And Juul shouldn't be written off just yet.It's not at all difficult to imagine more normalized trading moving MO to a mid-teen earnings multiple and a still-high 5% dividend yield. Both suggest Altria stock could trade back to the mid-$60 range, about 50% higher than current levels.All that said, it's too simplistic to believe that vaping alone has driven the selloff. Again, Altria stock was falling long before the Juul investment. High debt and an aggressive dividend policy have raised fears of a cut. That combination has wreaked havoc on stocks like Kraft Heinz (NASDAQ:KHC) and Anheuser-Busch (NYSE:BUD).But some of the selling pressure that began in 2017 was caused by vaping, based on fears that U.S. customers would start defecting from combustible cigarettes at a higher rate. If Juul indeed will see plunging sales, it stands to reason that Altria's owned business will benefit as well. As a result, the recent selloff seems somewhat illogical -- and likely to reverse as clarity returns to Altria and Juul.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Helping, Not Hurting: Regulation Would Be Good for Altria Stock appeared first on InvestorPlace.
Berkshire Hathaway’s returns have lagged the S&P; 500 by a wide margin this year. Buffett has been criticized for not deploying the massive cash pile.
The Denver company that calls itself the "iOS" for cannabis dispensaries is getting a major update in the form of a $23 million capital raise. Retail tech company Flowhub, which just moved into messaging app firm Slack's (NYSE: WORK) former Denver headquarters, announced today the closing of that Series A funding round backed by big names with serious track records. The oversubscribed funding round was led by venture capital firm e.ventures — which has invested in companies like Angie's List (Nasdaq: ANGI) and Groupon (Nasdaq: GRPN) — along with Kraft Heinz (Nasdaq: KHC) venture fund Evolv Ventures and cannabis-focused investment firm Poseidon.
Kraft Heinz (KHC) stock has turned out to be a lousy investment for its shareholders. The stock has fallen 37.4% on a YTD (year-to-date) basis as of today.
This fall could deliver another round in a Washington food fight, as three congressmen last month re-introduced a bill that aims to define the term “natural cheese.”
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 12 months is one of those periods, as the Russell 2000 […]
The Kraft Heinz Company (KHC) (“Kraft Heinz”) will release its third quarter financial results on Thursday, Oct. 31, 2019, before the market opens. Kraft Heinz will host a conference call at 8:30 a.m. Eastern Daylight Time that day to review and discuss the results, followed by a question-and-answer session with analysts. The earnings release and live audio webcast of Kraft Heinz’s earnings conference call can be accessed at ir.kraftheinzcompany.com.
This World Food Day, October 16, Kraft Heinz will hold a 24-hour global meal-packing relay race in partnership with Rise Against Hunger, an international hunger relief non-profit organization. Starting in Sydney and ending in Chicago, 15 Kraft Heinz offices and factories around the world will join together to pack over one million meals destined for children and families in need. Kraft Heinz CEO Miguel Patricio said, “As one of the largest food and beverage companies in the world, Kraft Heinz is committed to doing our part to end global hunger.
Investors are increasingly embracing the cash-secured put sale strategy to create returns that generally far exceed what is available in the bond market.
Smucker (SJM) gains from buyouts and partnerships. It is on track with cost-saving efforts. However, divestiture of its baking business is taking a toll on the top line.
One way that CBD businesses are adapting to the market growth is by hiring top talent from successful companies in other industries. Prior to entering the business world, Dickens served as a pilot and commander in the U.S. Army for eight years. After the army, he started working in marketing at Kraft Foods, driving growth for brands like Henkel, Post Cereals, Soft Scrub, Renuzit and Right Guard.
Kraft Heinz stock rose 9% in September despite its second-largest investor reducing its stake. The stock will likely underperform in the short term.