Wednesday, April 08, 2009
Easter Candy and Chocolate Stocks
With Easter approaching, investors are looking at candy and chocolate companies for investment opportunities. Of course, chocolate will always be popular since it can reduce free radicals, lower blood pressure, increase serotonin levels, and it tastes good. Here are some stocks in the confectionery business that may be worth taking a bite out of.
Hershey (HSY), founded in 1894, is the largest manufacturer of chocolate in North America and one of the largest chocolate and candy companies in the world. Hershey's Kisses were invented in 1901 and their chocolate chips were introduced in 1928. The stock has a P/E of 27, with a favorable yield of 3.3%.
Rocky Mountain Chocolate Factory Inc. (RMCF) is a very low cap stock [and should therefore be considered very speculative], based in Durango, Colorado, which makes and markets caramels, creams, mints, and truffles. The company, which was founded in 1981, has over 300 franchise locations in 40 states, along with Canada and the United Arab Emirates. The P/E is 10, and their yield is 6.4%. This is a very low cap stock and should be considered very speculative.
Cadbury plc (CBY) is a London based confectionery and beverage company, which was founded in 1783. Some of their products include cocoa powder and milk chocolate bars. Their brands include Cadbury Creme Egg, Cadbury Dairy Milk, Clorets, and Dentyne. The stock has a P/E of 95, a PEG of 1.32, and a yield of 3.4%.
The Swiss based company Nestle (NSRGY.PK) is involved in a lot of businesses including pharmaceuticals and nutrition products, but most consumers know it for its chocolate and candy business. Their net profit margin for the latest quarter is 23%. The stock has a PEG ratio of 0.74.
Lindt & Sprungli AG (LDSVF.PK) is another Swiss based company. They produce premium chocolate, which includes the brands Lindt, Ghirardelli, and Caffarel. Their net profit margin for the latest quarter is 13.5%.
Barry Callebaut (BYCBF.PK) is yet another Switzerland based company, which produces cocoa, chocolate and candy products. Their net profit margin for the latest quarter is 5.6%.
Even Tootsie Roll Industries Inc. (TR) produces candy for Easter such as Easter Tootsie Roll Midgees, Easter Miniatures, and the Easter Edition Tootsie Roll Candy Wreath. The stock has a P/E of 34 and a yield of 1.4%.
Make sure you check out Valentines Day Stocks, and Getting Married Stocks. Also, don't forget that Mothers Day is coming up next month.
Full Disclosure: Author owns HSY.