Tootsie Roll Industries, Inc. (NYSE:TR)

Company sucks

I like the candy - but I don't like the stock. Ridiculously overvalued.

This company will really conquer the S&P 500 performance. This weeks for sure. Let's celebrate.

love the company..but its expensive.,.and its a low beta stock.. and QE3 makes that a losing bet

This is getting a little bit ridiculous isn't it? Tootsie Roll Industries is currently trading at 33x earnings and 22x cash flow and is continuing to trade higher.

For comparison, Chipotle (CMG), is trading at 35x earnings and 27x cash flow. The main difference between the two however, is that Chipotle burritos are an actual growth story; Tootsie Rolls are not anymore. TR has barely managed 2% revenue growth over the last five years while watching its EPS plummet. Meanwhile Chipotle is pumping out top and bottom line growth of at least 20% each year.

In a very similar case to Hershey (HSY) I believe that too much "safe money" has been put on these companies as investors are looking to find recession proof holdings with a nice little dividend yield. At the end of the day however, a little bubble will still pop sooner or later and I believe that is what we are looking at here.

117. The Hershey Company (NYSE: HSY) is ridiculously overvalued. I guess this shouldn't surprise me because so is Tootsie Roll Industries (NYSE: TR). I'm downthumbing them both. Hershey should be trading between $50-$55, but the redthumbing at present is mostly because they are trading at the top of their channel. Expect them to fall below $58. There's a new analyst that I've never heard of: "Ticonderoga" that apparently assigned Hershey a price target of $66. Unbelievable. Who are these people? For the most part, Hershey is trading above the other analyst estimates. Look out below!

http://seekingalpha.com/article/299029-tootsie-roll-overvalued-by-all-metrics

http://beta.fool.com/bradford86/2012/01/04/price-market-part-22/

short watchlist

Waiting for a buyout of this mediocre performing stock.

30x p/e. where is the massive growth to justify this?

They have been a mediocre performer for years

The stock is overvalued compared to its peers. EBITDA growth has been non-existent, yet the stock is demanding a premium. The brands are also domestic in nature with no international presence.

First - TR has a family management team that refuses to perform short-term optimizations to meet analyst expectations.

Second - TR has a family management team that actually understands it's core business - it grew up around the industry

Third - I expect that with the coming recession, people will stop buying big-ticket items (new cars, GM will hurt, and housing starts are in the dumps anyway) but people will still buy candy for Children - perhaps more than usual.

Finally - I don't think investors will abandon TR the way they've abandoned Citigroup, etc. There won't be a run on the market; this is a conservative company that makes a real product people actually want.

Tootsie Roll, a classic American candy. Too bad the management seemingly cares little about the shareholders... Much of the company is owned by the CEO and his wife, who have done little to increase shareholder value in recent years except paying themselves massive salaries.

The only reason I am rating Tootsie Roll as an outperform is that it is sitting on a pile of cash and the management is so old that they'll be dead soon and the company will most likely be acquired by a larger competitor.

Stock that has beat the S&P 500 most of 2008 and insiders own more than 10 percent of the stock.

At a recent high with lower volume.

toosie crap roll

Screen: 2-stars, little price change in last 26 weeks, P/E > 20.

People still eat tootsie rolls? Gross.

Give it a P/E under 15 and I would consider it (I probably still wouldn't buy it).

P/E of 28+? No sir.

This is one of the most obvious shorts in the market. Company trades at nearly 30x earnings and it is contracting. The older generation eats this type of candy, not the new generation. Most kids don't even know what this is.

They havent beat earnings in a year and have missed 3 of the 4 latest announcements. A potential buyout is baked into the stock because of the recent aquisition by Warren Buffet of Wrigley. It isn't gonna happen. That nasty black candy isn't Wrigley.