close
Edit Metric
Company
Value
Source
Source URL
Notes
Cancel
 
close
Edit  |  History
Details
Company:
Value :
Source:
Source URL:
Notes:
 
Feedback
Get involved
FAQ

Top Bears Reasons To Sell — Vote below!

Add a New Bears Reason

Company: Hershey Foods (HSY)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
1 votes

edit New competition from Mars-Wrigley's juggernaut

Mars, the makers of M&M's, has announced a deal to buy the Wrigley chewing gum company for $23 billion. The merger will create a candy-making giant and that could pose a serious threat to HSY's market share.

(100 character max) Cancel
100%
agree
1 votes

edit Shrinking Margins

Rising prices for commodities are taking a bite out of Hershey's margins. Hershey's has tried to pass these costs onto customers; in January the company raised wholesale prices 13% for half of its domestic candy line to offset rising costs for ingredient, fuel, utilities and transportation. Despite these efforts, earnings fell 32% in the latest quarter while gross margins drop from 35.9% to 32.4%.[1]

(100 character max) Cancel
0%
agree
0 votes

edit Worst quarter performance expected

Regardless of the ultimate impact on results, the price increase could distort results during the current quarter. During the four-week period ending February 24, 2008, existing customers may, based on their historic order patterns, order and take delivery of up to eight weeks of inventory at current prices. Given that the consensus estimates expect the first quarter to show the worst performance compared to last year, inventory builds could result in a one-time positive surprise that should be ignored.[1]

(100 character max) Cancel
0%
agree
0 votes

edit Hershey's has lower margins than its competitors

Hershey's has lower margins than its competitors. Aggressiveness from Mars and Néstle could make things difficult for the company since Hershey's needs to maintain high production levels to remain profitable.

(100 character max) Cancel
0%
agree
0 votes

edit Continous restructuring

Hershey’s expects a sales increase of 3-4% this year, but for diluted EPS from operations to decline from the $2.08 reported in 2007 to the $1.85-$1.90 range. And that excludes the impact of an estimated $0.37-$0.40 in restructuring charges. Since Hershey’s has reported such charges in seven of the last eight years, treating them as non-recurring stretches both my credulity and my patience.

(100 character max) Cancel
0%
agree
0 votes

edit Bitter Chocolate

Hershey’s (HSY) stock has been anything but sweet for investors in recent times. The shares are off more than a third from the 52-week high and trade barely above half their value from the 2005 peak. From higher costs to increased competition, from product recalls to production disruption, you name the problem and Hershey’s has probably seen it. Throw in the Hershey Foundation’s voting control (and ability to block the company’s sale or merger) and it is no wonder investors seem bitter.

(100 character max) Cancel
0%
agree
0 votes

edit The Hershey Foundation has voting control and can block a sale or merger

Hershey Foundation’s voting control (and ability to block the company’s sale or merger[1])

(100 character max) Cancel
0%
agree
0 votes

edit 90 percent of Hershey's revenues come from the North American market

90 percent of Hershey's revenues come from the North American market. Overall growth in this market is slow and Hershey's will face stiff competition as it tries to enter Asia.

(100 character max) Cancel
The Shelf
Contributions
Help make Wikinvest better! Learn how to get involved. And create an account to build your reputation.
Did you know…?
Bookmarks
Worried about pump and dump?
We review changes
for stock spam
Want to make Wikinvest better?
We need your help,
contribute today
Do you write software?
We are recruiting
the best engineers
Like Wikinvest?
Spread the word —
Tell your friends!
Wikinvest © 2006, 2007, 2008. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki