Jim Cramer's Mad Money Review

This site is dedicated towards tracking Jim Cramer's stock picks on his TV show Mad Money. Read about and discuss Jim Cramer's ability to move markets. Be ahead of the stock market. Get the news before its news.

Monday, September 24, 2007

Jim Cramer's Mad Money Lightning Round Sept. 21st

Bullish:
Cisco (CSCO): if you want to be in tech.
J.C. Penney (JCP): He thinks that this stock is undervalued and is a buy at this price.
Integrated oil companies like ConocoPhillips (COP), Chevron (CVX), and Exxon Mobil (XOM) are better plays.
American Eagle (AEO), Abercrombie & Fitch (ANF) or Aeropostale (ARO), in that order.
Kellogg (K): Cramer is bullish on Kellogg, as well as General Mills (GIS) and ConAgra (CAG).
Cramer is sticking with Baidu.com (BIDU) as the best China play.
Cramer likes NVIDIA (NVDA), Texas Instruments (TXN), and Intel (INTC)

Bearish:
Xerox (XRX)
American Capital Strategies (ACAS): Cramer's undecided on the stock, so he's avoiding it.
Tesoro (TSO): Cramer thinks gas prices aren't high enough to be in a refiner,
Luxottica (LUX): "Don’t buy!"
Hot Topic (HOTT)
Aluminum Corp. of China (ACH)
American Superconductor (AMSC)

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Monday, September 17, 2007

Jim Cramer's Mad Money Stock Recap Sept. 14th

Wall of Shame: Citigroup (C), Syntax Brillian (BRLC), Alcatel Lucent (ALU)
Cramer, equal opportunity critic of bad CEOs described three current Wall of Shame chiefs who disgraced themselves even further last week. Cramer owns Citigroup for his charitable trust and has been on a crusade to have CEO Chuck Prince removed, because the bank's management is the worst he has ever seen due to unwise investments. Only their huge deposit base will save them. However, Cramer would hold Citigroup, because he feels it has potential. BRLC dropped 35% last week thanks to chief Vincent Sollito's passing the buck to Asian partners after the company failed to meet earnings expectations, according to Cramer, who added he resents the way Sollito painted a rosy picture of the company when he appeared on Mad Money. Cramer commented on Patricia Russo's remarkable lack of execution as the company's orders shrink amid a telco boom benefiting ALU's competitors. He would sell BRLC and ALU.
Outfoxing the Fed: Coca-Cola (KO), PepsiCo (PEP), Kellogg (K), General Mills (GIS), Wachovia (WB), Goldman Sachs (GS), Morgan Stanley (MS)
Cramer discussed three scenarios: the Fed would not cut rates and create Armageddon, or would introduce a quarter or a half-point cut, either of which will not yield good results. Insisting that the Fed needs to cut rates a full point, Cramer said lesser cuts will lead to hard selling, and it is a good time to look at classic defensive stocks such as KO, PEP, K, and GIS. A half-point cut on Tuesday means it is time to buy solid financial stocks such as WB, MS and GS.
Fantasy Football Stocks: Exxon Mobil (XOM), Medco Health Solutions (MHS) Enterprise Products Partners (EPD), was Research In Motion (RIMM), Freeport-McMoRan Copper & Gold (FCX)
To conclude his fantasy football series, Cramer revealed his team picks on Friday. His quarterback was XOM which, like Peyton Manning of the Colts, is expected to match last year's great performance. MHS is a strong defensive play that could go to $100 and is as dependable as the New England Patriots. With a 6.5% yield and a good combination of safety and defense, EPD was Cramer's pick for tight end, and reminded him of Jason Witten of the Dallas Cowboys. RIMM is doing fabulously be every metric and could double again. Cramer compared the company's potential growth to that New England Patriot wide receiver Randy Moss. FCX can survive a difficult economy, according to Cramer, and its gold business should do well in China. He picks FCX as his running back, similar to LaDainian Tomlinson of the San Diego Chargers.
Mad Mail: Caterpillar (CAT), EMC (EMC) and VMware (VMW)
Cramer told one writer that CAT is a good CEEMEA (Central and Eastern Europe, Middle East and Asia) play. Another writer questioned the need to diversify in a tech boom, and said 65% of her portfolio was made up of tech stocks. Cramer reminded her of the dot.com fiasco in the 90s. Finally, a writer asked Cramer why he preferred owning EMC to VMW. He replied that EMC benefits from the success of VMW but is cheaper and safer.
Published by SeekingAlpha

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Friday, August 17, 2007

Jim Cramer's Wall Street Confidential Aug. 16th

PepsiCo (NYSE: PEP - News), Pfizer (NYSE: PFE - News), Schering-Plough (NYSE: SGP - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Altria (NYSE: MO - News), CVS Caremark (NYSE: CVS - News), MedcoHealth (NYSE: MHS - News), Cardinal Health (NYSE: CAH - News)
Cramer says almost everyone, including him, is "getting killed" in this market, and he wants viewers to understand "why it's so cataclysmic out there, so at least they have the grounding to say, 'OK, I'm willing to ride this out." While some suggest getting out of stocks, Cramer recognizes many people invest for the long term. However, he added; "What I'm trying to do is focus on what can work and what will really be hurt, not what's working, because nothing's working." Cramer said he got through the credit crunch in 1990s by focusing on the bull market and on 20 stocks that weren't losing. Examples may be PEP, PFE, SGP, K, GIS, MO, CVS, MHS, CAH. While he may have 10 to 1 bears out of every stock pile, Cramer urges viewers to "recognize that as the Federal Reserve continues to do a de facto tightening, you're going to continue to have spillover."
Published by SeekingAlpha

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Wednesday, May 30, 2007

Jim Cramer's Stop Trading May 29th

Mastercard (NYSE: MA): After Bear Stearns gave MA an outperform rating and a price target of $184, the stock rose 2% to $141.82. Cramer says MA is going "much, much higher."General Mills (NYSE: GIS), Kellog (NYSE: K): Cramer says GIS and K are exceptions to the market's surprisingly "soggy" trading action.

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Monday, March 19, 2007

JIm Cramer's Mad Money Review Mar. 16

Caterpillar (NYSE: CAT - News) Terex (NYSE: TEX - News), Cummins (NYSE: CMI - News), Paccar (NasdaqGS: PCAR) and Manitowoc (NYSE: MTW - News)
Cramer declares it a “travesty of a mockery of a sham” that Caterpillar lingers at $63.16 while TEX, CMI, PCAR and MTW are up. On the other hand, he thinks the low price on his top stock of the quarter is a “sale on a best-of-breed stock” which is down 14% year over year. He believes the market is mistaken in grouping CAT with sluggish housing instead of with natural resources. Cramer would “ride” up Caterpillar, which should benefit from rising commodity prices and the end of the yen carry trade which will take the edge off the competition. With a $7.5 million buyback, Cramer thinks the company could bring up its own stock.
Related: Todd Sullivan takes a closer look at Caterpillar.
Regeneron Pharmaceuticals (NasdaqGM: REGN), Nastech Pharmaceutical (NasdaqGM: NSTK)
Cramer told the story of REGN, which was sitting at $5 two years ago, hit $24 and has settked at $18. This gain was accomplished with revenue decline and without a “concrete” product. Cramer predicts NSTK will be the next REGN, and although it is considered a "a comedy of errors” and doesn’t have a new drug in the pipeline, NSTK has money in the bank and the advantage that biotech trades “on hope.” In addition, Cramer noted the company has an effective obesity and insulin drug and has the only “pure play” on autism. Cramer urged interested investors to do homework on NSTK and use limit orders when buying.
Related: H.S Ayoub reports on the phase one test of NSTK's insulin spray.
Game Plan for the coming week: National CineMedia (NasdaqGM: NCMI), Verizon (NYSE: VZ - News), AT&T (NYSE: T - News), Sprint (NYSE: S - News), and Qwest (NYSE: Q - News), AAR (NYSE: AIR - News), General Mills (NYSE: GIS - News), Goldman Sachs (NYSE: GS - News)
On Monday, Cramer would buy NCMI, a “fast growing” company that makes cinema ads, and he notes NCMI has not moved since it went public. Concerning a $20 billion government phone contract reported in The Washington Post, Cramer believes Q is the most likely candidate, since T and VZ are too big and S is high because of takeover news. He suggested investors buy GS “hand over fist” on Monday because of its aggressive buyback plan, GIS ahead of its earnings on Thursday, and AIR before Wednesday.
CEO Interview: Peter van Stolk, Jones Soda's (NasdaqCM: JSDA)
When Cramer asked Peter van Stolk to account for Jone's great quarter, van Stolk credited his team’s hard work, strong sales and the introduction of the 12 ounce can; "I think the conversion to pure cane sugar is what's really taken it by the storm." Van Stolk said another advantage is “I can put [a photo] of your loved ones on a bottle of Jones Soda.” Competitors Coca-Cola and Pepsi lack the patent. Cramer thinks JSDA has more room to rise.

Published By SeekingAlpha

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Wednesday, March 14, 2007

Jim Cramer's Mad Money Stock Recap Mar. 13

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."
Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."
Published by SeekingAlpha

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Jim Cramer's Mad Money Review Mar. 13

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."

Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.

Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."

Published By SeekingAlpha

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Thursday, January 18, 2007

Jim Cramer's Wall Street Confidential Jan. 17

Rackable Systems (NASDAQ: RACK - News), Intel (NASDAQ: INTC - News), Hewlett-Packard (NYSE: HPQ - News), Microsoft (NASDAQ: MSFT - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News)
Cramer says that investors should be selling tech because seasonality is working against the sector, and that RACK's problem has more to do with the time of year than its component shortage and competition. Concerning Intel, Cramer explains its new chip will not reach a 90% to 95% acceptance rate this year, and since gross margins will not rise until then, Intel "cannot be owned" right now. However, the problems with RACK and Intel do not alter Cramer's prediction that tech will outperform in 2007. Cramer would buy HPQ because it will benefit from Microsoft's Vista. Cramer would also pick up Cisco down at $26 or $25 because of the incredible ramp in cable; "If you have a product cycle, I think you can ride out the seasonable weakness," Cramer said. Apple transcends seasonality because it is a "secular growth story and and a product cycle story." He would take advantage of any decline to buy Apple.
JP Morgan (NYSE: JPM - News), Capital One Financial (NYSE: COF - News)
Cramer is bullish on JP Morgan because of its credit card growth and added that COF is one of the most hated stocks, noting that there is a tremendous January $75 put to buy COF. If the company reports a lackluster quarter, the puts will act as a trampoline. Cramer says that it is worth investing in airlines again, and would take profits and buy them again.
UPS (NYSE: UPS - News), Procter & Gamble (NYSE: PG - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Oil Service HOLDRs (AMEX: OIH - News), Caremark (NYSE: CMX - News), Rite Aid (NYSE: RAD - News), Comcast (NASDAQ: CMCSA - News), Time Warner (NYSE: TWX - News)
Cramer is bullish on UPS and likes rails, which are a buy on any decline because the trucking sector is suffering. He added that Goldman Sach's upgrade of PG was worth noting and, if it weren't for a strike, the stock could reach $67 or $69. He attributes the success of PG and CL to investor's desire to look for other soft goods that are not dependent on corn prices. However, since cereal is only 3% to 4% corn, Cramer thinks selling Kellogg and General Mills is premature. Concerning oil, Cramer thinks that OIH has been a reliable barometer for oil prices and is heading toward a bottom, but he hesitates to recommend it because it is an "easily manipulated index." Cramer would ring the register on Caremark, and of all the drugstores, he would own only RAD. Finally, Cramer predicted that Comcast is "headed dramatically higher" and said that, at $22, Time Warner is undervalued.
Published by SeekingAlpha

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Thursday, December 21, 2006

Market Update

10:00 am : Equities are still on the offensive as the bulk of industry leadership remains positive. However, while eight out of 10 sectors are trading higher, Energy pacing the way with only a 0.3% advance on what is expected to be a low-volume session ahead of the holiday weekend lends little conviction on the part of buyers. Consumer Staples ranks a close second following upside surprises from the likes of ConAgra (CAG 27.96 +1.11) and General Mills (GIS 58.89 +0.90), both of which are at new 52-week highs. Albeit not a sector component, Rite Aid (RAD 5.51 +0.14) swinging to a profit in Q3 leaves Drug Retail as one of this morning's best performing S&P industry groups. The absence of leadership from the Tech sector, following sales warnings from Jabil Circuit (JBL 24.55 -2.01) and PMC-Sierra (PMCS 6.68 -0.21), is contributing to the market's inability to move more aggressively to the upside. DJ30 +8.49 NASDAQ +2.53 SP500 +1.81 NASDAQ Dec/Adv/Vol 958/1562/152 mln NYSE Dec/Adv/Vol 1013/1629/70 mln
09:40 am : The market opens on an upbeat note as falling oil prices and a relatively encouraging batch of earnings reports help investors look past a downward revision to Q3 GDP. Before the bell, the Commerce Dept. showed that the U.S. economy grew at a slower pace (2.0%) than previously estimated (2.2%), marking the weakest quarter since Q4 of last year when the economy expanded at a 1.8% annual rate. Fortunately for the bulls, the dated nature of the report and the forward-thinking of the market have so far left investors more interested in the current strength of the economy and a focus on forecasts for 2007. DJ30 +10.28 NASDAQ +4.33 SP500 +1.96 NASDAQ Vol 78 mln NYSE Vol 40 mln
09:15 am : S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +1.5.
09:00 am : S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: +1.5. S&P 500 and Nasdaq 100 futures continue to trade above fair value, but both contracts clinging to their positive bias leave little confidence that stocks will get back on the buying track following yesterday's breather. With the market having already sifted through most of the earnings news, investors may be waiting for today's Philly Fed data (12:00 ET) and testimony from Richmond Fed President Jeffrey Lacker (1:00 ET) to shed some more light on economic growth.
08:35 am : S&P futures vs fair value: +1.4. Nasdaq futures vs fair value: +2.5. The final read on Q3 GDP was surprisingly revised lower to 2.0% (consensus 2.2%) while the accompanying chain deflator -- a key measure on inflation -- ticked up slightly to 1.9% (consensus 1.8%). Initial claims rose 9K to 315K. However, given the dated nature of the GDP data, as well as the latest read on labor conditions merely matching economists' forecasts, neither report has had much influence on trading so far. Bonds, which were flat ahead of the report remain relatively unchanged; the 10-yr note is up 1 tick to yield 4.58%.
08:00 am : S&P futures vs fair value: +2.0. Nasdaq futures vs fair value: +1.0. Early indications are pointing to a slightly higher start for stocks. A pullback in oil prices and a batch of better than expected earnings results (e.g. NKE, CAG, GIS, PAYX, and ACN) are contributing to the positive disposition. However, with economic data returning to the forefront after a one-day hiatus, there is little conviction on the part of buyers as investors preoccupied with the pace of economic growth await the final read on Q3 GDP. Also hitting the wires at 8:30 ET, and possibly helping to set a more definitive tone to trading, will be weekly jobless claims that were compiled during the same week as the closely-watched payrolls report.
06:17 am : S&P futures vs fair value: +2.2. Nasdaq futures vs fair value: +2.5.
06:16 am : FTSE...6192.00...-6.60...-0.1%. DAX...6582.49...-4.42...-0.1%.
06:16 am : Nikkei...17047.83...+36.79...+0.2%. Hang Seng...19222.84...-17.28...-0.1%.
Source: Briefing.com

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Wednesday, December 20, 2006

7 Stocks You Need to Know for Thursday

Here are 7 stocks for traders for Thursday from TradingMarkets.com:
Accenture (NYSE:ACN - News) beat earnings Wednesday afternoon, announcing $0.46 EPS over an expected $0.42 EPS. ACN's PowerRating is 6.
Cognos (NASDAQ:COGN - News) beat earnings after the close Wednesday with $0.48 EPS over an expected $0.43 EPS. COGN's PowerRating is 6.
Finish Line (NASDAQ:FINL - News) beat earnings on Wednesday afternoon; analysts were expecting -$0.08 EPS, but FINL came out with -$0.06 EPS. FINL's PowerRating is 6.
Nike (NYSE:NKE - News) barely beat earnings this afternoon, announcing $1.15 EPS over a consensus of $1.13 EPS. NKE's PowerRating is 6.
Paychex (NASDAQ:PAYX - News) also barely beat with $0.35 EPS over an expected $0.34 EPS. PAYX's PowerRating is 5.
General Mills (NYSE:GIS - News) reports earnings on Thursday before the bell; look for $1.03 EPS. GIS's PowerRating is 5.
Rite Aid (NYSE:RAD - News) reports quarterly earnings Thursday morning before the bell, with analysts expecting -$0.01 EPS. RAD's PowerRating is 8.
PowerRatings are courtesy of PowerRatings.net

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Monday, November 20, 2006

Campbell Soup Co. (CPB.N: Quote, Profile, Research) posted better-than-expected quarterly earnings on Monday as price increases and new items like low-sodium soups helped lift sales.
But the stock was about flat as some analysts questioned the near-term growth potential of a company that already trades at about 20 percent times fiscal year 2007 earnings. The company, which makes its namesake soups, Pepperidge Farm cookies and Godiva chocolates, said profit was $291 million, or 72 cents a share, in the fiscal first quarter, ended October 29, compared with $302 million, or 73 cents a share, a year earlier, when the company recorded a $47 million tax benefit. Campbell shares were down 4 cents at $37.51 in afternoon trading on the New York Stock Exchange. Before Monday, the stock was up 26 percent this year, and trading at about 20 times estimated earnings for the current fiscal year, compared with a multiple of 18 for rival General Mills Inc. (GIS.N: Quote, Profile, Research), which makes Progresso soups.
Source: Reuters.com

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