Thursday, May 26, 2011

"Even if all your stocks are crashing down like it's Judgement day on wall street, people are still going to need to eat and drink"

Dow Jones Industrial Average  12,381 (Down) May 23rd , 2011

Well I survived May 21st to live and talk another day. That was supposed to be Judgement day. I think God decides himself how and when we will make our exit from this earth.
Many sadly did perish in devastating F5 tornadoes and floods in the Central USA region.  I tried to find out how many people on average die each day on earth and it looks like 150,000 per day. Maybe the "Rapture" is like a Rolling Stones concert and you have to wait in line each day until its your turn to get a ticket. So it is going on all the time, non-stop everyday. The good news is that 200,000 people are born each day so we are gaining a surplus of people, give or take a few plagues, epidemics and wars.

At any rate, these people all need to eat and drink, so you should be safe with the stock of
J.M. Smucker's ( Symbol SJM, $77.37) . Smuckers will preserve 2011 earnings per share of $4.77  and  perk up 2012 earnings of $5.09 per share. The J. M. Smucker Company on Strawberry Lane in Orrville, OH.  is engaged in the manufacturing and marketing of branded food products on a worldwide basis.

OH MY GOD! OMG!  This is the longest blog to write in history. May 25th now.  I have just been informed that Mark Haines, pioneering Anchor of the CNBC  business show Squawk, has passed away today at the age of 65.

Mark Haines, who history will remember along with Sue Herera as the first anchors of what is now the formidable shows of CNBC "Squawk Box" and "Squawk on the Street ". They started out working on cardboard boxes and a couple desk. Mark told Sue not to sell her house in case this thing doesn't work out! Wow!

 As a lifelong follower and worshipper of business television, I am crushed and devastated at the lost of Mark Haines. He was the Rock of CNBC.  What Louis Rukeyser had began on Friday nights, Mark Haines brought to daytime TV, first thing, every morning and expanded infinitely . He cared about the individual investor highly, and he would scrutinize every guest that would cross his path for their benefit . Where would we be without the invention of CNBC television. Lost somewhere in the 1950's I guess.

Rolling Stones ticket. Enjoy the concert Mark. I salute you with a tip of the glass of Pinot Noir and a bag of Cheetos dipped in Ketchup, your favorite. 
 No way to segway here. Mark was on duty on the CNBC show reporting as the 9-11 day news broke on the World Trade Center attacks. He handled it, and I will handle his loss here. Mark would want the reporting to continue and the valued information to get out to individual investors.

Coca-Cola Co. (Symbol KO, $66.91) is the next stock I would take a look at. Coke just looks cheap to me here. 2011 earnings projected at $3.86 per share and 2012 projected earnings of $4.28. Just about 9% five year sales growth, 17.3 % five year earnings growth, and 31.7% net profit margins make this one dynamic stock. 41.50% Return on Equity an a 2.81% dividend yield will put some fizz in your portfolio.

Another food stock and piece of Americana like Coke, is the American icon Kellogg Co. (Symbol K, $56.78). Similar dividend yield as Coke at 2.88%, Kellogg will have 2011 earnings of $3.48 per share and 2012 earnings of $3.80 per share. This is a very conservative investment which will give you a 11-12 % return annually between the dividend and capital appreciation. (52.7% Return on Equity by the way.)

 Cereal for breakfast, Mac and Cheese for lunch.
 Kraft Foods Inc. Cl A  (Symbol KFT, $34.62 ) with a 3.37% dividend and decent revenue growth of 7.37% annually  is the next stock choice. Kraft posted staggering revenue numbers of $50 billion in sales. If they could get a little more of that to fall to the bottom line, things could get real interesting here. Kraft has a nice chart since February 2009 and should continue to rise. Good steady return on your equity. Need to cut a little debt.

Mark Haines - CNBC Icon - we will miss you

Rest in Peace Mark.


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