H.J. Heinz Company (HNZ)

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.

OK, part of my reason for picking Heinz is personal. My boyfriend's from Pittsburgh and even though I have no interest in the Steelers or Pirates, I do have an interest in this stock. The price is high right now, which could be worrisome in the short-term, but as a long-term prospect this is a fairly solid company.

This is my stagnation play.One will always need food.

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.

THIS WILL JUST GET STRONGER IN 2009/2010 AS MORE & MORE PEOPLE STICK WITH THE STPLES OF LIFE. BUY QUARTERLY & HOLD!!!!!

too much infighting on the Board

I don't like all their debt.

If I was Buffet I would pick up this giant.

Have held this one for a while and it is one of my stronger performers. A market leader with a nice dividend, good diversity within their food market, strong international sales, innovative - margins should benefit short-term from recent price increases with recent downturn in commodity costs plus, with more families eating at home due to the current economic downturn, Heinz products should benefit from increased home foods sales. I believe this one is a long-term winner.

Heinz (HNZ) reported solid quarterly earnings on 21 Aug and has now pulled back a bit. The stock trades at about 17.5 times ’09 earnings estimates, has a modest estimated growth rate of 8.3% and the dividend yields 3.2% based on the 25 Aug closing price.

In the conference call, management gave a range of $2.87 to $2.91 for 2009 earnings which is slightly below analysts’ consensus of $2.92.

The conference call painted a picture of very strong growth in emerging markets, particularly for ketchup sales in Russia. In the Q&A portion of the call, Executive VP and CFO Art Winkleblack stated, “Its broad based [emerging market growth], it’s not just one market we’re seeing good results. Latin America, we’re seeing it in the Middle East, we’re seeing it in South Africa, China, India, etc.”

The company has been able to pass much of the higher commodity costs along in pricing and has forward contracts that lock in about two-thirds of their commodity costs for the year.

At the annual meeting earlier this year, the CEO made a comment about acquiring Campbell’s Soup (CPB). During the conference call, Mr. Winkleblack dismissed it as an offhand comment.

The company has no plans to buy back stock this year and is open to acquisitions. Use of cash for the year was prioritized as paying dividends then looking to acquisitions. Share repurchases weren’t ruled out, but are considered a lower priority.

HNZ is a solid dividend paying stock that should weather a tough market well. The company has been growing earnings and has good prospects for continuing the earnings growth. The company has averaged about a 9% dividend hike for the past 5-years.

Conference call quotes are from the transcript at SeekingAlpha.

Have had this in my personal account for about two years--don't know how I missed adding it to my CAPS. I'm losing money on it, but down about 18% compared to S&P approx -38% in that time. Plus, with a current 4.7% dividend, and dividends all along, my actual loss is less. Expect it to continue to perform relatively well going forward.

H. J. Heinz Company, along with its subsidiaries, engages in the manufacture and marketing of processed food products worldwide. The company offers ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant food, and other processed food products. Note: We all have to eat and unless they find ground glass in a baby food jar this stock is a keeper.

1. Nice dividend

2. Potential takeove candidate

3. Defensive stock

technical earnings play

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.

been rolling this year, primed for pull back

Heinz will grow slowly over the next year, and will provide solid dividend yields.

far too expensive for this sector

I have two boys...if they are a representaion of todays youth, they better make more ketchup. Not very technical is it. Tell me why nobody has figured out in a 100 + years how to make ketchup as good as heintz? Tell me you can't tell the difference when a resturant fills a heintz bottle with some other brand...youbetcha