SYSCO Corp (SYY)
The Company through its subsidiaries and divisions distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
Recs
Margins will continue to be squeezed due to high gas costs and lower sales to restaurants. I think it is a long term buy and DRIP and will outperform in time, just not the next little while. It just depends on your time horizon and goals. I'll be buying on dips and bad sentiment.
Recs
Fast foods and prepackaged foods ore being prepared at home more often now. The restaurant industry sees increases in business when the economy is active, not during challenging times.
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It seems that a big part of Sysco's client base is restaurants. I don't see that industry as being a great investment in the near future. I think Sysco will be challenged with rising food prices and possibly restaurants with declining comps.
Additionally, I don't see Sysco as having been a great investment to begin with. Over the past five years, capital appreciation is essentially non-existent. According to my Yahoo price chart, the stock price was just a notch above $30 five years ago. Today it sits at about $33. Pathetic. I suppose the somewhat meager dividend is the only redeeming feature.
Personally, I think I would be better off with T-bills than Sysco.
Recs
I think this stock has underachieved for too long, the food distribution business is getting very tough and this stock is going to suffer even more than the company as a result
Recs
Recs
With food scares in the distribution chain occurring more often, expect the FDA of this administration or the next to start clamping down hard on this sector. Tied in with this stock's current depressed state, it looks to be on the wrong side of performance.


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