H.J. Heinz Company (HNZ)

bartleyrc (73.22) Submitted: 11/17/2009 12:06:37 PM : Start Price: $42.28 HNZ Score: -1.62

This stock will grow steadily, just at a slower pace than the overall market because of the maturity of the company and the commodity nature of its products. An excellent investment for the risk-averse, but not going to beat the S&P.

jvaskonen (92.38) Submitted: 3/7/2009 2:40:12 AM : Start Price: $42.65 HNZ Score: -25.56

I must say. I gave Heinz a thumbs-down because I hate ketchup. This, like so many others, seems to be a point where me and the rest of the country disagree. Tomato + Sugar = Nasty nasty bairly edible stuff. Given the sour score I've made on this stock so far, I guess that America's love affair with the devil's sauce is not over. I still, however, long for the day when ketchup will no longer be foisted upon me every time I order fries. I am pretty sure all of Heinzes profits for the last 2 quarters are sitting under my desk in the form of uneaten ketchup packets that I do not have the heart to throw away because I was taught not to throw away food -- which tomato-coloured corn syrup somehow still qualifies as.

However, if the blessed day ever comes that one can order some fries without having that ghastly slop thrown in for "free," Heinz stock will drop, and my caps will soar. I expect that day to come shorty after everyone finally gets a dvorak keyboard layout fired up on their linux desktop machines... I would have rated those stocks too, but Dvorak is dead and Linux is brought to us by a bunch of commies.

Thus ends my non-pitch.

Actually, it does not end it. I can't help but add this. If you eat ketchup voluntarily -- there is something wrong with you.

waderjw (< 20) Submitted: 10/17/2008 11:28:44 AM : Start Price: $39.83 HNZ Score: +12.51

I don't like all their debt.

jandmamck (45.24) Submitted: 3/27/2007 2:21:32 PM : Start Price: $42.69 HNZ Score: -18.22

too much infighting on the Board

mattleit (< 20) Submitted: 3/24/2007 4:39:47 PM : Start Price: $42.80 HNZ Score: -18.39

Very expensive for the limited, low growth product categories that it is involved in. Not a company that is known for its new thinking or products and is consistently in a reorganization mode.

greendoggie (73.81) Submitted: 3/19/2007 5:29:18 PM : Start Price: $41.71 HNZ Score: -19.02

far too expensive for this sector

JUMPKIS (91.30) Submitted: 2/4/2007 1:05:24 PM : Start Price: $42.55 HNZ Score: -19.35

Will grow, but not enough to beat the S&P.

Significant overseas competition, not much to show for itself in the states besides ketchup.

NetscribeConsGds (93.47) Submitted: 12/19/2006 6:42:55 AM : Start Price: $41.52 HNZ Score: -19.95

Heinz, where are the gainz??? H J Heinz revenues are dependent on the manufacture and sale of ketchup, frozen foods, soups, and other processed food products under the brand name Ore-Ida, Heinz, and Smart Ones. The company operates in five global business segments with bulk of the revenue coming from Europe (34%) and North American consumer products (31%), and the remaining coming from U.S. Foodservices (18%), Asia Pacific (13%) and Other (4%).

The company’s top line has been on the rise for the past two quarters, but Europe, which generates one-third of total revenues, is being impacted by a slower economic growth. Heinz’s operating margins have been volatile for the past few years, struggling to stay above 16%, as the management desires. Moreover, margins are being consistently squeezed on account of higher commodity, packaging and distribution costs. The planned reduction in promotional spending would negatively impact the volumes.

Heinz has raised its EPS guidance, thanks to pressure created by Nelson Peltz who faulted management for the poor performance of the company’s stock for the past eight years. Further, to aggravate the scenario, the election of Nelson Peltz and Michael Weinstein as board directors, following a fairly nasty and public proxy fight, increases the uncertainty about the company's long-term strategy and direction.