Loading ...Question on diversification: Conagra
Conagra (CAG) is today selling at the same price that it was 27 years ago.
With food inflation not going away any time soon, what is the TA take on this dividend play?
My understanding is that this company can be a safe haven to park cash, get dividends, plus TA seems to indicate a long term consolidation pattern. When the tech bubble eventually deflates, will CAG be another WMT?
Thanks,
GL
Note the following:
1. Their product is primarily high carb and seed oil processed foods, which cause metabolic disease long term.
2. They are a DEI company. Check their website.
3. Net debt over $9 billion, with mcap $13 billion. So the issue is, they are leveraged, and when they go to rollover their debt, the interest rate likely will be much higher.
Bottom line: At a 5% dividend, its not worth it. DEI alone is a big negative, as is the huge debt load.
Thanks Sir Leo for your due diligence and advice. Always great to hear insights that this naive investor may have overlooked.
GL
The stock is clearly in a stage 4 decline. That means avoid or if already owned get out NOW. Bounce is unable to get over a declining 30 W EMA. That’s bad juju.
https://stockcharts.com/h-sc/ui?s=CAG&id=p10738381654&listNum=43
https://stockcharts.com/h-sc/ui?s=CAG&id=p11954229773&listNum=43
Thanks Sir Plunger and great to hear from you! I will just put CAG on the backburner for now and wait for blood on the streets if I do ever plan to pick up a pilot position in it. The way I look at CAG is that junk food is unfortunately one of the “pillars” of USA and is being now abundantly exported to the third world.
GL