ConAgra (NYSE:CAG) is about to release earnings results. Ponder this Bear Case Scenario:
Cost reduction measures have not been successful. Margins are around 10% , whereas General Mills comes in at high teens. Someone has to learn how to swing a machete and fast.
Its portfolio of consumer products are second and third tier. No pricing power to dominate the market place. Margin compression is the norm.
Lamb Weston lost a lot of potato sales and will be struggling through 2014.
George Gutowski writes from a caveat emptor perspective.