SYSCO Corp (SYY)

5/4/09 Pitch: Upthumb. Trememdous value in a well managed company with a stellar balance sheet and excellent cash flow. However, Citigroup and JPM recently downgraded it on concerns over restaurant food business declining.

dividend raiser and strong financial's

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Sysco (SYY) is a major food distributor, they have had consistent growth for decades, and as long as we continue to eat, they will do well.

one of the only stocks not moving as the market rallies. So the market believes more in housing than it does in restaurants? They have $1 b in cash, $1 b in free cash flow/year, paid a dividend for 38 years, and by many reports continue to gain market share and set it sights on acquisitions in this trying market. A payout ratio of 52% and a yield of 3.7%, the dividend looks to be very safe for many years. They also have an extremely successful network of distribution centers making them a large moat, dominant company in their field. A TMF favorite pick, it looks like great portfolio balance to energy and commodities for the next 5 years. When many are still expecting a market correction, the dividend could even make this stock a 'safe haven' pick in any outcome.

feeding the USA out of their plates and paper products...

A leader in the restaurant supply business, is integrating aquisitions successfully

Undervalued.

good stable winner

80 companies inside the SYY "wrapper" are now unifying to purchase orders for the first time.
This will allow them to increase margins and grow the bottom line. This should be almost immediate.

There is a strong possibility that SYY will also have a multiple expansion because of this increase in operating margins.

SYY could be considered a growth story at a value price before this move to get lower prices from suppliers.

The perfect storm.

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.

people got to eat 24/7 get it got it good!

great earnings and profits

Good institutional business in down market but when people start going back to restaurants this stock will take off.

Earn your dividend but it take long term investment.

As the industry itself has grown from $35 billion to more than $200 billion, Sysco has maintained the No. 1 spot.

The stock trades at about 12 times earnings and yields 4%, with plenty of defensive qualities for the current environment.

food distributor that took cost cutting and streamlining measures ahead of this downturn.
No longer purchasing as 30 separate entities but as one purchaser....increasing margins and flexibility.
Further expansion abroad would be a future catalyst and the management team is stellar.

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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.