Hormel Foods Corp (NYSE:HRL)

kenwedig (< 20) Submitted: 4/9/2007 7:37:22 PM : Start Price: $16.73 HRL Score: -83.43

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

NetscribeConsGds (95.87) Submitted: 1/24/2007 1:12:04 AM : Start Price: $16.97 HRL Score: +79.58

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.

rlhansonfool (82.07) Submitted: 1/13/2007 12:10:15 PM : Start Price: $16.97 HRL Score: +79.70

RECENT ACQUISITIONS WILL HELP GAIN MARKET SHARE IN VALUE ADDED MEAT PRODUCTS

learningpapa (< 20) Submitted: 12/8/2006 4:23:45 PM : Start Price: $17.23 HRL Score: -75.88

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