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Saturday, October 13, 2012

SmartBalance and Campbell

Today's post for Consumer Foodstuffs are about SmartBalance (SMBL) and Campbell (CPB). SmartBalance, a functional food products and replacement food products solutions company, was created in 2005. It distributes products that are healthier than the everyday products sold. The current CEO of SMBL is Stephen Hughes. Since incorporation, SmartBalance showed a tremendous future in the stock market, nearly doubling in just two years. However, since late 2007 and 2008, the stock have been falling; in mid 2012, the company experienced a well needed surge and increased its share value by almost $7. As we began studying more recent activity in the company, we were looking forward to big changes, but the market is fairly stable. On September 14th, the company's price target was risen, and so were stocks. Two weeks later, on September 27th, the mother company of SmartBalance, Dean Foods, sought buyers from MorningStar which consequently increased the stocks by half a point. With its cheap price and stability, investing in SMBL is a great low-risk plan for new investors, especially those worrying about a large profit/loss margin. We bought ten shares in the company nearly a month ago, priced at $12.18 and now at $12.14, and, although we lost some money, this still shows the stability of the market. Always remember to buy low and sell high.
Our other company is Campbell. This American favorite soup distributor, as well as other convenient foods, was established in 1922, and is now headed by Denise Morrison. The company grew from the 70s up until 1998, when it reached its apex at $60, and has since remained stagnant around the $30 mark. During September, the share price stayed close to $34 without significant change. On September 10th, Campbell released astonishing statistics that lowered the stock price: it announced that it had lost 14% of the market since the previous decade. Considering Campbell now owns 53%, a decade earlier it had control of 67% of sales in soup and such products! Later, the September 19th release of the new V8 Fusion Juice kindled new trading with the company and increase shares by almost a dollar. Campbell seems to be heading in the right direction on the stock market, and, since the dividend release in late September, looks to be on the rise. We suggest to invest in the company short term, as it can easily fluctuate between $33-$35 in a single day.

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