Sara Lee (SLE) is Baking Up Something Good for Investors' Portfolio's - Barron's (KFT, CBY)
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Sara Lee (NYSE: SLE) shares have been down 35% over the last ten years, which make it a good acquisition for your portfolio, according to a Barron's article.
Barron's states that the company CEO, Brenda Barnes, is making some strategic moves in shedding underperforming assets . She could save as much as $100 million this year from her work.
The company is also diversifying away from their "pound cake" image with offerings such as EarthGrains bread, which somehow will provide whole wheat and fiber nutrients with a white bread taste to it.
Funds like Gamco Investors, Soros Fund Management, and Pzena Investment Management hace all increased their stake in the company through the third quarter.
Some analysts believe that SLE stock could jump as high as $16.50 or more, a 38% increase from the current $11.96 level. The 52-week high on the stock is $12.61, and the low is a gloomy $6.80.
SLE stock pays a dividend of $0.11 quarterly, which amounts to a 3.7% yield on an annualized basis. The company also almost immediately announced a $1 billion share buyback after selling its body-care business to Unilever for $1.9 billion.
Because of the recent activity between Kraft (NYSE: KFT) and Cadbury (NYSE: CBY), rumors of more M&A action are sweeping the industry. For example, SLE's booming coffee business which is made of up overseas brands like Douwe Egberts and Cafe do Ponto, accounts for about 25% of sales and 50% of profit. With consideration to J.M. Smucker's (NYSE: SJM) 2008 purchase of Folger's coffee, Sara Lee's coffee business could go for about 2.5x sales.
The company recently said that it would lower the salt in many of its offerings by about 20%. They also offer products like Deli Selects, Ball Park Franks, and Jimmy Dean products. All of these products have gained market share in the past year.
Investors may be able to have their cake and eat it too with Sara Lee.
Barron's states that the company CEO, Brenda Barnes, is making some strategic moves in shedding underperforming assets . She could save as much as $100 million this year from her work.
The company is also diversifying away from their "pound cake" image with offerings such as EarthGrains bread, which somehow will provide whole wheat and fiber nutrients with a white bread taste to it.
Funds like Gamco Investors, Soros Fund Management, and Pzena Investment Management hace all increased their stake in the company through the third quarter.
Some analysts believe that SLE stock could jump as high as $16.50 or more, a 38% increase from the current $11.96 level. The 52-week high on the stock is $12.61, and the low is a gloomy $6.80.
SLE stock pays a dividend of $0.11 quarterly, which amounts to a 3.7% yield on an annualized basis. The company also almost immediately announced a $1 billion share buyback after selling its body-care business to Unilever for $1.9 billion.
Because of the recent activity between Kraft (NYSE: KFT) and Cadbury (NYSE: CBY), rumors of more M&A action are sweeping the industry. For example, SLE's booming coffee business which is made of up overseas brands like Douwe Egberts and Cafe do Ponto, accounts for about 25% of sales and 50% of profit. With consideration to J.M. Smucker's (NYSE: SJM) 2008 purchase of Folger's coffee, Sara Lee's coffee business could go for about 2.5x sales.
The company recently said that it would lower the salt in many of its offerings by about 20%. They also offer products like Deli Selects, Ball Park Franks, and Jimmy Dean products. All of these products have gained market share in the past year.
Investors may be able to have their cake and eat it too with Sara Lee.
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