ConAgra: Attractive 4% Yield and a Well Managed Food Company

One of our favorite top US food producers ConAgra (CAG) will be reporting third quarter 2011 earnings on March 24th. We thought it might interest readers to show them what indicators and clues our dual cash flow and accrual model was telling us about CAG. Before we begin, investors should be aware that the biggest challenges facing packaged food makers in this environment are sky-rocketing commodity prices, intense competition and brand loyalty. Protecting market share in this business comes at a great cost, usually extracted in margin erosion or a hit to equity from write-downs or charges. Consumers enjoy the luxury of walking into a grocery store and finding at their fingertips a tremendous range of options, brands and prices to choose from. The grocery stores for their part, realize how important it is to have you in their store and they want you to come back...again and again. Grocers... Read more

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