+ Watch TR
on My Watchlist
The Company is engaged in the manufacture and sale of confectionery products for over 100 years.
This is a $12 stock selling for $30+. Earnings growth is projected by 1 analyst to be 7.5%, There has been basically no growth though for the last 13 so what's different now? 48 years of div increases and it still only yields 1%. Maybe the board doesn't believe in a lot of long term growth either. I don't red thumb often but this one just looks ridiculous to me.
Based on many factors TR will possibly be acquired by a major competitor. Candy industry buyouts have accelerated in recent years. In 2008, Mars Inc. bought WM. Wrigley Jr. Co. with Warren Buffets help creating the third largest private company in America with revenue of $100 billion. In 2010, Kraft Foods Inc. acquired Cadbury PLC in a deal valued at over $19.5 billion. Last year, Hershey Co. bought Canadian confectioner Brookside Foods Ltd. Hershey is widely expected to make other acquisitions to boost sales. Given TR's ruling couples ages, the lack of any publicly disclosed succession plan, Possibly??? The Gordon's will look to sell TR to a company that is willing to preserve TR's traditions which is most important to Mr. & Mrs. Gordon. Mars, Inc. is a better candidate than Hershey Co. due to the Warren Buffet factor. Mr. Gordon is a lot like Mr. Buffet in his common sense approach to business. Mr. Buffet would recognize the true value of TR and it would remain a dominant force as a candy maker for years to come. Just my opinion...
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-metricshttp://beta.fool.com/bradford86/2012/01/04/price-market-part-22/
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 industryThird - 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.
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