ThePanelist.com - Conagra Expects Higher 2007 Earnings

Conagra Expects Higher 2007 Earnings - What Does Neubert Do?

Written by David Neubert

Wednesday, 23 May 2007

ConAgra Foods, Inc., (NYSE: CAG - $25.67) expects to report higher-than-projected earnings per share for fiscal 2007. ConAgra expects fiscal 2007 earnings per share to be above the high end of the $1.28-$1.33 range it had previously announced. The consensus is $1.34.

So what's Neubert doing with his Conagra?

I just keep holding my position. After the company lowered the dividend my yield is only 2.8%, but earnings are turning around and I'm looking at a p/e under 20. If the stock were to go up much more ($27.00-$30.00) I'd definitley start selling, but I wouldn't sell everything. I still think Conagra Foods could be nicely managed (owned) by Kraft Foods (KFT - $33.44). And with Kraft Foods on the rise, their currency keeps looking better relative to Conagra (see Kraft Foods to go on Acquisition Spree?)

David Neubert in Milton, PA at Chef Boy Ardee Disclosure: I own Conagra. I bought it as a value play and it has proven to stay value and really lagged the market. I may sell Conagra, as described above. I have eaten Chef Boy Ardee Ravioli (A product of Conagra). I stopped at a dinner next door to the Chef Boy Ardee Factory in Milton, PA on my recent cross country drive (see photo). Canned Ravioli is great while camping. I own Kraft Foods (KFT) and am also short 32.50 strike puts in KFT.

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Comments (3)

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written by Fred , June 01, 2007

As an ethical investor how could you possibly support ConAgra?

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written by David Neubert , June 01, 2007

Hi Fred, Thanks for your comment.
Three Questions for your question:
1. In what way am I "supporting" Conagra?
2. Please ellaborate on what you believe is the unethical behavior of Conagra. I'm happy to use my shares to influence management to change behavior or even get them fired if they won't change.
3. Is there any specific Conagra behavior you'd like to bring up?

The Sins of Conagra (CAG)
written by Fred , June 04, 2007

In a recent survey on corporate governance and climate change, ConAgra received a score on for emissions reductions. http://www.ceres.org/ for its lack of disclosure and preparation.

Conagra has also overseen terrible animal rights abuses at their plants, in particular the Butterball plant in Arkansas as documented by PETA http://www.peta.org/mc/NewsItem.asp?id=9021

ConAgra has also understated the impact of genetically engineered crops and have failed to alert their shareholders to the liabilities associated with genetically engineered ingredients. You can find more information here: http://www.uspirg.org/

Although purchasing stock may be seen as supporting a particular company (by raising its value, among other reasons) your ability to engage with the company as a stockholder may offset that monetary vote of confidence. Would like to hear more on your views.

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