A ripe investment for speculators who think energy and commodity costs may drop.
Del Monte (NYSE: DLM, Stock Forum) is a stock for fruits and it is doing poorly enough to prove that. Davenport recently downgraded the stock. At $7.46, it is at its 52-week low and volume is way up. Late last week it traded four million shares while making its low.
Del Monte is a perfect match for investors who want a play for rising or falling energy costs. It has a great deal of exposure to fruit and tuna along with the gas expenses to ship them.
The company's last quarter was fine, but that was before the commodity price spike hit hard.
In its fiscal fourth quarter, DLM’s revenue rose 11%, just over $1 billion. Operations income was up about one-third to $50 million. What dumped the stock was Del Monte said for fiscal 2009 that it expects net sales growth of 5% to 7%, much worse than last year.
Speculators who think energy and commodities costs may drop have a ripe one here.
Stockhouse Conflict and Disclosure Policy:
Stockgroup Media Inc., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
