With the markets still in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio. With the aforementioned in mind, Hormel Foods is worth an evaluation.

Hormel Foods (NYSE: HRL) is a diversified producer of consumer foods. A processor of the now universally known "spiced ham" product -- SPAM -- Hormel is also a top U.S. turkey processor and a major pork processor, including the Jennie-O turkey, Cure 81 hams and Always Tender fresh pork brands.

In general, analysts expect 5-7% revenue growth for Hormel for FY2008, with an adequate performance from its grocery division, with pricing power offsetting lower volumes.

Meanwhile, refrigerated foods should outperform expectations in FY2008, with widening margins; specialty foods demand probably will be flat.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Bunge Ltd. is worth a review.

Bunge Ltd. (NYSE: BG) is the world's No. 1 soybean processor, a leading South American fertilizer maker and provider, and a major U.S. food processor. BG is also the world's largest oilseed producer. Analysts see BG's sales advancing 13-17% in 2008, after a double-digit gain in 2007.

Further, analysts believe Bunge is well-positioned in the world's largest food production regions to take advantage of the world's fastest-growing consumption markets. In addition, analysts like BG's 80-nation footprint.

Margins may narrow slightly in 2008, due to higher commodity and energy costs. The Reuters F2008/F2009 EPS consensus estimates for BG are $6.63/$7.61.

The risks? Analysts are keeping an eye on soybean margins. A global economic slowdown would also (obviously) hurt BG's results.

The First Call mean rating for BG is: Hold [9 firms]. Mean 2008 target: $132 [high: $143, low: $120].

Stock Analysis: Bunge Ltd. is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BG's shares. Sell / Stop Loss if you were to purchase shares in this company: $72.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.