Market update
Monday: Japanese stocks suffered their worst daily drop in more than 3 months
The Nakkei Average tumbled 3%
U.S stocks mostly lowered on Monday due to Japanese recession
Walmart
WMT’s revenue growth has slightly outpaced the industry average of 0.9%
Net operating cash flow has significantly increased.
Sales grew in the home goods, apparel and health categories, as well as at the smaller Neighborhood Market stores. Online shopping was another bright spot
Target
Total sales increased 2.8%, beating the industry average
Gross profit at the U.S. segment inched up to 0.2%
Baker Hughes and Halliburton Merger
Halliburton, an oilfield- services provider, says it can slash 2 billion after acquiring its similar- sized rival
Actavis to buy Allergan
Bill Ackman’s stake in Allergan Inc. has almost doubled in revenue.
Actavis will purchase Botox maker Allergan in a 66 billion deal
The combined firm expects to have revenues of 23 billion in 2015
Stock pitch
J&J Snack Foods
Business overview
1971 Pennsauken, NJ
Consumer Goods; Processed& Packaged Goods
Manufactures, markets and distributes foods and beverages
U.S., Mexico, and Canada
Food Service, Retail supermarket and frozen Beverages
Seasonality Influence
Stock summary
Small cap
P/E 26.9 (little bit higher than industry)
Financials
Net sales increased 7% for the quarter and 6% for the year
Very low in debt
Operating cash flow(100 mill)
Sufficient to fund future growth
Acquisitions can be a potential growth
In the News
Partnership with Mondelez International
Oreo Churros (a new product):
The churros can be served with OREO cookie creme dip, supplied by J&J Snack Foods
Risk and Competitors
Part of the risk with any food/ beverage/ service company is the ever- present threat of a downturn in consumer sentiment/spending
Wheat production
Given subsidiaries located and operating Canada, Mexico- risk lie in those markets
Competitors with similar products: Snyder Lance& Mrs. Fields
Forecasts
Growth: 5.84% in 2015, 6.50% in 2016
PE: 25.35 in 2015, 23.83 in 2016