Home » Bear Case Scenario » ConAgra Foods Bear Case Scenario $CAG, $GIS, $NSRGF, $GPDNF, $ASBFY

ConAgra Foods Bear Case Scenario $CAG, $GIS, $NSRGF, $GPDNF, $ASBFY

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.

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