Continue reading Hershey to Close Original Factory

Hershey to Close Original Factory originally appeared on BloggingStocks on Thu, 07 Oct 2010 15:00:00 EST. Please see our terms for use of feeds.

Is there a squeeze developing in the cocoa market? Is sure feels and smells like it. A squeeze is when one firm buys large quantities of a product, usually a product in short supply, holds it, waits for the price to go up and then unloads it at the higher prices.

This is exactly what is happening in the cocoa market. Amajaro, a hedge fund, took delivery of 240,000 tons of cocoa on London's Life exchange. The cocoa was then certified and stored in warehouses ready for resale.

Continue reading A Short Squeeze Developing in the Cocoa Market?

A Short Squeeze Developing in the Cocoa Market? originally appeared on BloggingStocks on Sun, 18 Jul 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Hershey May Be Looking to Pick Up Cadbury

Hershey May Be Looking to Pick Up Cadbury originally appeared on BloggingStocks on Thu, 14 Jan 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Kraft Sells Pizza So It Can Buy Chocolate

Kraft Sells Pizza So It Can Buy Chocolate originally appeared on BloggingStocks on Tue, 05 Jan 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Kraft launches hostile takeover of Cadbury

Kraft launches hostile takeover of Cadbury originally appeared on BloggingStocks on Mon, 09 Nov 2009 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Halloween stocks offer investors a chance at financial treats

Halloween stocks offer investors a chance at financial treats originally appeared on BloggingStocks on Fri, 30 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

Steady-as-she-goes, to cite an old Star Trek phrase, regarding The Hershey Company (NYSE: HSY), which is why I'm reiterating my Buy rating for the company, first recommended on April 23, 2009 at a price of $37.45.

Manufacturing savings, new products, and promising opportunities for revenue growth in international markets, along with demonstrated marketing prowess, point to a bright future for HSY. The company's dual-class capital structure with unequal voting rights is problematic, but not enough to change the overall investment evaluation.

Continue reading Hershey still makes the great American chocolate bar

Hershey still makes the great American chocolate bar originally appeared on BloggingStocks on Wed, 19 Aug 2009 18:20:00 EST. Please see our terms for use of feeds.

Continue reading Hershey delivers sweet profits

Hershey delivers sweet profits originally appeared on BloggingStocks on Thu, 23 Apr 2009 17:00:00 EST. Please see our terms for use of feeds.

Not only did the bottom line fare well, but the top line didn't do so badly, either. It increased well over 6%. Okay, that's not a rocketing growth rate, certainly, but all things considered, I think it was a decent performance. Hershey benefited from pricing strategies and the Easter holiday. If you ask me, I think the recent rally in the markets helped to bolster consumer confidence. That may have helped Hershey sell a lot of its candy. Management seemed pretty pleased with volume trends and the response to its marketing initiatives, judging by comments made in the release.

Continue reading Hershey has solid Q1, but is the stock too strong to buy?

Hershey has solid Q1, but is the stock too strong to buy? originally appeared on BloggingStocks on Thu, 23 Apr 2009 15:00:00 EST. Please see our terms for use of feeds.

Quietly, chocolate companies have been snapping up little makers of organic and fair trade chocolate; Cadbury, PLC (NYSE: CBY) started the trend by buying Green and Black's in 2005, and then Hershey (NYSE: HSY) jumped on the bandwagon, buying Dagoba Organic Chocolate in 2006.

Since then, fairly traded and organic chocolate bars have become more and more popular among consumers; while exact numbers are hard to find, organic chocolate sales have more than quadrupled since 2000 and were $94 million in 2007. Fair trade chocolate sales have been nearly doubling on a year-over-year basis since 2000.

Continue reading Sustainable chocolate: Next must-have ingredient for snack companies

Sustainable chocolate: Next must-have ingredient for snack companies originally appeared on BloggingStocks on Wed, 15 Apr 2009 11:40:00 EST. Please see our terms for use of feeds.

Hershey (NYSE: HSY) reported earnings for the fourth quarter, and investors seemed to think they were rich and delicious. As I was writing this, shares were up 5%. Why were they up so high?

Well, earnings beat estimates. Hershey managed to deliver an adjusted $0.59 per share. Wall Street wanted $0.54, so there you go. Also, that was four pennies better than the previous year's performance. While that was good, it should be noted that Hershey had an overall problematic year, as it saw earnings per share decline a little under 10% to $1.88 per share. Currency changes are hampering sales growth, so Hershey will need to keep marketing activities as strong and efficient as possible. Margins are also being addressed, as management is hunkering down to wring out every conceivable saving in the supply chain.

Continue reading Hershey beats estimates in Q4, should you taste the stock?

Hershey beats estimates in Q4, should you taste the stock? originally appeared on BloggingStocks on Tue, 27 Jan 2009 17:30:00 EST. Please see our terms for use of feeds.

I remember when Rocky Mountain Chocolate Factory (NASDAQ: RMCF) was a cool stock. Unfortunately, that was then and this is now. The economy is horrible, and it's getting worse. Rocky Mountain is not the company with which to ride the storm out.

The third-quarter earnings report, issued on Thursday, showed terrible data. Revenues declined well over 16% to $6.3 million. Earnings per diluted share took a big drop of 30%, coming in at $0.14. And it doesn't stop there. Comps for franchised outlets dipped over 2%. Same-store pounds of products bought by franchisees dropped 10%. Let's face it, people are cutting back on Rocky Mountain's confections. I'm sure they're delicious, but it just doesn't matter. Rocky Mountain is going to continue to struggle as we make our way through this macro mess. Management points out that the stock does pay a dividend of $0.10 per quarter. That gives a yield, as of Thursday's closing price, of just about 6%.

That's not bad, and I suppose if you're a long-term value investor who has extremely solid patience, you might want to take a look at Rocky Mountain's shares. I mean, we all know that equities are pretty irrationally priced these days. But, would I step in and buy the stock as any sort of defensive position for my portfolio? No way. I think it's headed lower. And besides, if I wanted to step in and buy something related to confectionery pleasures, I'd probably consider Hershey (NYSE: HSY) first. Not only am I a big fan of the Reese's peanut butter cup, but I perceive the portfolio controlled by Hershey to be a lot more valuable in these troubled times than Rocky Mountain's line of products. Let's hope all the Halloween trick-or-treaters out there are gearing up to help out the confection industry at the end of this month by demanding a whole lot of treats. Goodness knows, the market has already had its share of tricks this year.

Disclosure: I don't own any company mentioned; positions can change at any time.

I wouldn't buy Rocky Mountain Chocolate Factory originally appeared on BloggingStocks on Fri, 10 Oct 2008 14:36:00 EST. Please see our terms for use of feeds.

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

One might assume that chocolatier Hershey Company (NYSE: HSY) got its name from the small Pennsylvania town it is located in, population 12,771. However, the truth of the matter is that the company is named after its founder, Milton S. Hershey, and that the town, which was formerly known as Derry Church, was renamed Hershey, Pennsylvania, in 1906 because of the popularity of the chocolate.

Milton Hershey built the milk processing plant he would use to make his milk chocolate in 1896 with profits he made from selling his caramel company, and three years later, in 1899, the "Hershey process" was born. In 1903, Hershey began construction of a chocolate plant in what would later become Hershey, Pennsylvania. The manufacturing plant, which now covers over two million square feet of manufacturing space, is now the largest chocolate factory in the world.

Just as important to the town's prosperity as the chocolate manufacturing plant is Hersheypark, an amusement park that is affiliated with the Hershey Company. The theme park is a huge employer for the town, a tourist attraction, and a branding device for the Hershey brand.

Hershey, Pennsylvania is truly a place where the company and the town have merged into a single identity. While there, you can tour Hershey's Chocolate World, Hershey Museum, and visit Hersheypark, all of which feature the history of both the company and the town, which will be forever intertwined.

Be sure to check out more Big Company, Small Town posts.

Big company, small town: The Hershey Co., Hershey, Pennsylvania originally appeared on BloggingStocks on Thu, 26 Jun 2008 10:10:00 EST. Please see our terms for use of feeds.

Will Wrigley deal push Hershey into the arms of Cadbury? originally appeared on BloggingStocks on Mon, 28 Apr 2008 12:12:00 EST. Please see our terms for use of feeds.

Continue reading High dairy costs, other pressures, crimp Hershey's (HSY) earnings

High dairy costs, other pressures, crimp Hershey's (HSY) earnings originally appeared on BloggingStocks on Thu, 24 Jan 2008 09:55:00 EST. Please see our terms for use of feeds.

Justice Department probes chocolate makers originally appeared on BloggingStocks on Fri, 21 Dec 2007 12:33:00 EST. Please see our terms for use of feeds.

Campbell's sells Godiva to Yildiz Holding of Turkey originally appeared on BloggingStocks on Fri, 21 Dec 2007 09:10:00 EST. Please see our terms for use of feeds.

Campbell Soup

The Wall Street Journal reports, however, that "should Starbucks indulge in Godiva, which Campbell put up for sale in August, it would be a departure from its modus operandi." Wall Street experts put the price of Godiva at around $800 million.

If Starbucks buys Godiva, it would be a huge mistake. The coffee retailer's shares are near a 52-week low, trading at under $26. They have a 52-week high of more than $40.

The doubts about Starbucks center around its long-term goal of having 40,000 stores worldwide. Investors are concerned that current same-store sales may be too weak to support that kind of expansion. If Starbucks goes into a second business without fixing its first, the company's stock could take another hit.

Godiva may seem like a sweet deal, but all it would do is take Starbucks' eyes off the ball.

Douglas A. McIntyre is an editor at 247wallst.com.

Starbucks looks at the chocolate business originally appeared on BloggingStocks on Fri, 02 Nov 2007 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Hershey (HSY) earnings not so sweet

Hershey (HSY) earnings not so sweet originally appeared on BloggingStocks on Thu, 18 Oct 2007 11:54:00 EST. Please see our terms for use of feeds.

Some people are disinterested in chocolate, while others of us would drive through a hurricane to feed our Godiva jones. According to the UK Telegraph, a new study in the Journal of Proteome Research suggests that the culprits may live in our stomach.

According to the findings of scientists at the Nestle Research Centre and others, the type of bacteria busy aiding in digestion in the guts of chocolate lovers may be different than those of people who don't crave the brown bliss. Since 90% of the cells making up a human being are actually bacteria and other symbiotic partners along for the ride, how could we expect to be able to fight off the urgings of such a throng?

While the findings are only suggestive of a link, I wonder if any chocolate company executives are already fantasizing about the effects on sales of adding the sweet-craving bacteria to their products.

I can't decide if this is good or bad news for the Hershey Co. (NYSE: HSY) and other chocolatiers. If you could eliminate your desire for chocolate, would you?

Hershey (HER) devotees may be smaller than you think originally appeared on BloggingStocks on Sun, 14 Oct 2007 13:10:00 EST. Please see our terms for use of feeds.