Hormel Foods Corp (HRL)

Assuming EPS growth of 7% and a discount rate of 9% for this mature company with little debt risk and a solid dividend to collect along the way, I calculate a fair value estimate of $35-$40, with little more risk to the downside that what has already been factored in.

good company its makes spam

innovative product developement;profit sharing w/ employees;steady management.

everone need to eat and they hve it all

CHILI

This company has good earnings and solid growth. And they should benifit from rising food prices.

1. smart acquisitions
2. excellent track record of growing national brands

it makes foods affordable in the recession

Good price, strong management, good growth...

Founded in 1881 by George A. Hormel & Company and changed its name to Hormel Company in 1995. I love their products. I still eat "SPAM" sandwiches often. As long as this world keeps eating to live, then Hormel will be around to make sure were fed. So invest in a company that feeds us daily.

Even in a recession, we have to eat.

Everyone buys these products.

Crop prices will be up they have long term contracts that will not work for their suppliers

Because of the weakening economy they're selling as much Spam as they can crank out. This is where all the money went when IHOP and Hardee's got too expensive for people living at or below the poverty line.

http://www.nytimes.com/2008/11/15/business/15spam.html

Solid products but with low visibility. It won't keep pace with more exciting food companies.

This stock is posed for a split. Great Company.Plus the fact they are able to utilize all thows illegals crossing the boarder to the country to keep Margins high and wages low.

Solid Company, Well run, High quality products

great stock

Hormel Foods engages in the manufacture and marketing of various meat and food products in the United States and internationally. It offers perishable meat products like fresh meat, sausages; shelf-stable products such as canned luncheon meats as well as food products and supplements. The company generates revenues from five segments namely Refrigerated products (49%), Jennie-O-Turkey Store (20%), Grocery (16%), Specialty foods (11%) and All other (4%).

Going forward refrigerated products is expected to drive company’s topline as it is among the six fastest convenience-oriented food items. Also, as the consumers are switching more towards sugar-substitutes, it entails a good fortune for Hormel Foods as the company generates a bulk of revenues from Specialty foods. Encashing on the opportunities its fourth quarter performance has also been good with revenue improvements across all their segments. To keep the momentum going, its acquisition of Provena and Saags should save costs ahead and boost the refrigerated foods segment, which forms about 49% of the sales mix.

Looking ahead, company plans to focus its marketing efforts on Hormel brand that contributes over 16% to the topline. As Hormel has high brand loyalty, upcoming unified packaging system would attract more sales as the entire grocery and refrigerated product line will be sold under a unique Hormel brand mark. Joint Venture with San Miguel could mark the entry for Hormel foods in the hog and meat business in Vietnam, which can aid its financial stability

One of the prime concerns is rising grain costs. But as the management initiates to pass on the increased cost to the consumers, the profitability is least to be affected. In the view of all these aspects, Hormel Foods looks like a delicious recipe for the investors.