1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Mariusz Skonieczny
Bill Kabourek
Articles (5983)  | Author's Website |

Specialty Food Producers Have Been Tasty So Far In 2009

February 05, 2009 | About:

January hasn't been kind to the buy and hold investor. Short selling, put buying, call writing, and, maybe, some savvy trading would have goosed performance.

Besides the For Profit Education stocks that I've written about before and believe to be overvalued, there is another small industry subset that has done well. Specialty Food has done nicely so far this year. I'm not talking the likes of Kellogg, ConAgra, or Pepsi, but their smaller, niche brethren.

Flowers Foods (NYSE:FLO), Diamond Foods (NASDAQ:DMND), and Smart Balance (SMBL) all have staked out corners of the food industry and dominate their niche. FLO reported today and beat by 3 cents and had a promising outlook. DMND had a similar report about a week ago. SMBL hasn't reported earnings yet, but they haven't pre-announced either. I own all three and wish I owned more at my entry basis. Adding to a position in this market is always dangerous since many brilliant ideas turn into falling knives. If I add more it will probably be FLO as they have the most conservative balance sheet.

It will be interesting to see how these companies perform in a bear market rally. they've done well by me since January and I remain hopeful that they will continue to be tasty. 

Bill Kabourek

thecrustycreditanalyst.blogspot.com/

About the author:

Bill Kabourek
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management firms that builds and manages customized investment portfolios for its clients. He is the author of Why Are we So Clueless about the Stock Market? Learn How to Invest Your Money, How to Pick Stocks, and How to Make Money in the Stock Market. Email: mskonieczny [at] classicvalueinvestors [dot] com. Webpage: www.classicvalueinvestors.com

Visit Bill Kabourek's Website


Rating: 3.5/5 (2 votes)

Comments

Please leave your comment:


GuruFocus has detected 6 Warning Signs with Flowers Foods Inc $FLO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners


aheffernanINSIDERS
aheffernanHIGH DIVIDEND STOCKS
philippenew - super grow revenu moyen
philippenew - Compagnie extraordinaire
kw1123All DCF - Buy
uiucJJRpdP/S and FCF/EV 2
Stephen NeumeierPiotroski 79 pb 1.3
DANGORDONREVENUS 2-28-17
kw1123S&P Buy
dpostelBook Appreciation
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK