Chasing Value: Is Hershey (HSY) getting sweeter?

The Hershey Co. (NYSE: HSY), which is the largest U.S. candy maker, is getting a new Chief Executive, David West, who is moving over from the COO suite. Shareholders will be anxious to see if this suite move really translates into a sweet move for the stock, which is down for the year about 25% from $56.75, closing near its 52-week low today at $44.50.

I have been watching this stock for a few weeks now as I search out what will be valuable in the coming year -- and then going forward for a lifetime. As "my pal Warren" likes to say, the proper holding period for a stock is "forever." Chocolate is a candidate for sure, and Buffett certainly would have to support this notion since Berkshire Hathaway (NYSE: BRK.A) owns a premier American Brand in See's Candies.

Chocolate may be as recession-proof as beer and lipstick, so this company is worth looking at as an investment opportunity. When I review the numbers I see both good and bad. To the good, it is paying a 2.56% dividend yield, which does sweeten the pot (OK, I'll stop that). To the bad, it is facing increased prices for sugar, now competing I suppose with the energy sector (ethanol), ironic since chocolate bars are promoted as energy food. Oil seems to have dipped in the past few days but I'm not sure the demand for sugar will.