Dean Foods Company (DF)

Fluid milk prices are headed down according to the USDA (2-22-08). While this is not good for farmers, it is very good news for dairy processors like DF. They have been squeezed tremendously over the past few months by very high dairy prices they had to pay farmers. Now that fluid milk prices are going back down (probably average around $16 per hundredweight in 2008), company profits will be much higher. DF stock prices hit a 52-week low in mid-February. I expect the stock is now headed back up at least 25% by late spring, early summer. DF was at $24.43 as of close on 2-22-08. I am willing to forecast a stock price of $30.00 by May 1.

Fluid milk prices are headed down according to the USDA (2-22-08). While this is not good for farmers, it is very good news for dairy processors like DF. They have been squeezed tremendously over the past few months by very high dairy prices they had to pay farmers. Now that fluid milk prices are going back down (probably average around $16 per hundredweight in 2008), company profits will be much higher. DF stock prices hit a 52-week low in mid-February. I expect the stock is now headed back up at least 25% by late spring, early summer. DF was at $24.43 as of close on 2-22-08. I am willing to forecast a stock price of $30.00 by May 1.