The Hershey Company (HSY)

Too many bears looking at it right now, small luxury items can do well in bad times - so says my theory.

The largest chocolate factory is in the world is in Hersey, Pennsylvania. This company is about 125 years old--Theodore Roosevelt was President. What gives me a great deal of confidence in it's long term stability is that the company is directed by the Hershey Trust Company, established in 1905 by the founder Milton Hershey to oversee the school he established for orphans. Later the Trust took control over the chocolate company. How many companies are there that are guided by a Board of Directors that are as concerned with directing both the largest residential school for needy children as well as the largest chocolate factory in the world? In 2002, when the Trust wished to sell its controlling interest, Pennsylvania politicians, philanthropists, citizens, and the entire city of Hersey rebelled. More than half of the Trust member's were removed. Since the end of September, the stock has dropped over 10%. All of the indicators of the company are consistent and strong. For example debt/equity, PE, gross profit margin, etc, and the essential fact is that there is no ten year period that it hasn't beat the Dow and S&P. What's not to like?

HSY is a stalwart - a large well-known firm that will grow faster than the slow growers, but HSY is not in the very rapid growth start-up phase of the industry life cycle. HSY is a noncyclical stock that tends to be unaffected by recessions. It has a beta of 0.32 as reported by S&P on 11/16/2009. Add HSY or Coca-cola, for example, to your portfolio for a long-term horizon so you have a noncyclical that will weather storms for you.

HSY displayed increased advertising expenditures in 2009, and this may pay-off with moderately more sales in 2010. However, recent increases in cocoa prices does present an opportunity for cost pressures in 2010. However, HSY has had recent profit margin improvement, and 2010 will benefit from supply chain efficiencies and productivity gains. HSY is for a long-term investor. Buy it and hold it for 10 to 50 years.

A Cadbury takeover would put a hurt on this company.

Excellent, wide moat company

Hershey is quality. It is the standard that all people who eat chocolate judge other brands.

I suspect when the current market debacle clears Hershey will once again stand out as the premier brand!

Too much debt with a dividend too high to start paying down the debt.

GOOD CANDY CO

good candy co

Um....hello? Chocolate. Can't imagine a world without Hershey. They do have a high debt ratio. But I am buying more Hershey's with Almonds to help them out. I do what I can....

Taking a nibble of a tasty brand & company. Who does not know Hersey? Well, for one, many people outside the US? And there in lies the catalyst for growth. HSY has a rock-solid domestic brand which provides a vehicle for long-term capital appreciation and a fair yield too. But it is the international potential which has me biting now. In my opinion, HSY has been slow to enter foreign markets and compete with the likes of CBY (Cadbury). But as the world becomes more globalized and favorable trade terms are established I believe that HSY will benefit and be able to secure significant market share and profits. This is a long term outlook to be sure but at these prices (near historic lows) I am confident of HSY being a sweet pick. Outperform!

Who doesn't like chocolate?

Chocolate is the best commodity for depresssion times

Historically Yum Yum in a slowdown/recession

The Green Tea Kiss has to go ...

candy

Hershey represents a touch of levity in my equities bucket. During tough times & the cold season: chocolate...

everybody loves chocolate

Good long-term investment in a volatile market. Mmmm chocolate...