Previously highlighted as a value name in our analysis released March 25, 2020, VF Corp. (VFC) has unveiled its plan for reopening stores across the Middle East, Europe and the United States as pandemic restrictions begin to ease. The earnings might have missed expectations on Friday (May 15), but digital sales and the ongoing reopening plan are clear positives moving forward, and the stock provides a value-oriented entry level at the same price as we recommended two months ago.
18 May 2020
While so many restaurants have been impacted by the ongoing pandemic with little end in sight, it's reassuring to see one with a plan in place to start reopening in a rational way. As pandemic safety restrictions begin to ease, The Cheesecake Factory, Inc. (CAKE) already knows how it will restart its dine-in operations. Additionally, it has measures in place to maintain liquidity before its dine-in revenue is rejuvenated. This provides confidence in the management and the company moving forward.
15 May 2020
Despite the closure of all sporting events affecting the Sporting Business, Fox Corp. (FOXA) witnessed record breaking audiences for FOX News and its FOX Businesses, helping the company to another earnings beat. With FOXA’s recent acquisitions and elections six months away to ramp up ad sales, we maintain our target price and continue to hold FOXA.
12 May 2020
Significant cluster open market purchases made by insiders at Bunge Ltd (BG) prompted an entry into the Model Portfolio on April 9, 2020, with other factors involved as well (new CEO, potential Spinoff, activist involvement). The confidence of the management, coupled with the temporary nature of the hits taken due to the ongoing Coronavirus pandemic, indicate to us BG will be able to recover and recommend increasing at these levels.
07 May 2020
Assuming no supply chain disruption, ConAgra Brands, Inc.'s (CAG) management expects to fulfill and exceed its FY20 guidance, a rare occurrence during the ongoing Coronavirus health crisis. Investors also took this as positive news, and CAG is using its accelerated free cash flow to pay down debt as consumers increasingly turn to the company's attractive frozen foods portfolio during quarantine and working from home. Read on for more.
24 Apr 2020
Given the current retail environment and widespread pandemic quarantine practices across the country, Bed Bath & Beyond, Inc. (BBBY) has seen a hit to its turnaround efforts, though this has been offset by a growing digital presence and increased cash balance. The turnaround plan is still on track to be delivered by CEO Mark Tritton by next month (May 2020), and we see the sharp decline in share price as a strong opportunity to accumulate BBBY ahead of its execution.
22 Apr 2020