Del Monte delivers a good second quarter

Cash flow wasn't so great during the quarter, as money was used to fund operations. The projection for the full fiscal year, however, points to better times for the metric. In fact, the outlook for cash left over after investments are taken into consideration was increased. Profit expectations were also raised.

Del Monte battles it out in the highly competitive arena of the supermarket space, but it's proved itself to be a strong player. When it comes to the stock, however, investors should keep things in perspective. When I covered Del Monte back in September, I noted the technical strength. Unfortunately, the shares didn't really go anywhere since then.

I think the stock is still strong, but like many equities in the consumer area, you may want to simply hold this one for a while to derive the greatest benefit. Related businesses such as ConAgra (CAG) and Kraft (KFT) are the same way: You hold, reinvest the dividends, and dollar-cost-average over time. That being said, I wouldn't be surprised if history repeats itself and Del Monte retreats after the earnings announcement. We'll see what happens.

Disclosure: I don't own any company mentioned; positions can change without notice.