Tootsie Roll Industries, Inc. (NYSE:TR)

CAPS Rating: 1 out of 5

The Company is engaged in the manufacture and sale of confectionery products for over 100 years.

Recs

1
Player Avatar mheusser (51.22) Submitted: 3/22/2009 8:10:20 PM : Outperform Start Price: $19.99 TR Score: -101.30

First - TR has a family management team that refuses to perform short-term optimizations to meet analyst expectations.

Second - TR has a family management team that actually understands it's core business - it grew up around the industry

Third - I expect that with the coming recession, people will stop buying big-ticket items (new cars, GM will hurt, and housing starts are in the dumps anyway) but people will still buy candy for Children - perhaps more than usual.

Finally - I don't think investors will abandon TR the way they've abandoned Citigroup, etc. There won't be a run on the market; this is a conservative company that makes a real product people actually want.

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