clueless
New Member
Joined: Feb 15, 2013 9:56:03 GMT -5
Posts: 12 
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Post by clueless on Mar 25, 2013 15:30:26 GMT -5
If you had a choice to buy 100 shares of GIS or HSY, which would you buy? If neither, what would you buy? Why?
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Mar 25, 2013 15:45:14 GMT -5
If you had a choice to buy 100 shares of GIS or HSY, which would you buy? If neither, what would you buy? Why? clueless, I for one would go with the numbers.. Lower Beta, PE and PEG..IE GIS.. & GIS ALSO YIELDS MORE. ... GIS CASH FLOW VALUE(CFV)129.93 ( 10 YEAR DISCOUNT) AND 190.88 30 YEAR DISCOUNT 7% GROWTH OK REAL 2ITH 3.2% DIVIDEND HSY CFV 10 YEARS 214.7 AND 650.91.... 30 YEAR DISCOUNT.. TOO HIGH TO BE REAL  ? 12.5% GROWTH EST BY www.valuepro.net/cgi/valuate.plJust a thought, BiMetalAuPt |
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Deleted
Joined: Nov 24, 2024 20:13:48 GMT -5
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Post by Deleted on Mar 26, 2013 14:48:50 GMT -5
Clueless - Here is my Opinion, which I base on Large amounts of Research I have done on HSY & GIS.
If the Choice for you is either GIS or HSY - Then at present I would opt for GIS. Although, I would opt for a small starter position at current levels (20 to 50 Shares), and seek to build the position from there when GIS drops back in price.
The trick is however to realize that GIS can & is very cyclical. Therefore, you need to make the commitment to hold on to GIS; EVEN if the Initial Position begins to show a loss; You need to do this upfront.
Longer Term GIS has done & does well. They have a Solid History of Holding/Raising the Dividend, even in Hard Economic Climates.
GIS can be a good solid core position in any portfolio; as long as you stick with it (as you would your favorite sports team, even if they are in a losing streak)
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As to HSY: Also a Good Company, however I would wait to seek a Starter Position in HSY until HSY would pullback 15 to 20% from Current Levels.
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Now a Personal Thought - I like "cross play" themes; whereby you invest into different corners of the same basic market sector (Think PEP/KO - Both Are Drinks Non-Alc: But PEP also has a Robust Snack Foods Business).
If it were me I would also be looking a K {Kellogg's). Which is a bit more focused on Cereals/Breakfast.
Same Solid History of Holding/Raising Dividends even in hard economic times: Also can & is very cyclical.
I would make the same play with K at current levels as I would with GIS. And thereby run a "cross play" of GIS/K .
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Not advice of what you should do - Just an opinion, based on my personal research and long term outlook.
D.I.
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Deleted
Joined: Nov 24, 2024 20:13:48 GMT -5
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Post by Deleted on Mar 26, 2013 15:45:52 GMT -5
neither
there are so many great food stocks
SYY Sysco
MDLZ Mondalez (spin off from Kraft)
Either of these would be preferred over GIS/HSY
But just my opinion.....please conduct your own due diligence
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Mar 26, 2013 20:46:42 GMT -5
DI,  Great analysis of the problem.. I also agree with PEP for long term, PEG of 2.4 and great DCV of 198.25 with 2% interest for 10 year T.Bonds. That is based on an 8% growth rate. Great firm and water is in!!! also 50/50 split would make this a better balance. I would use dividend reinvestment also... Just a thought, BiMetalAuPt  |
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