General Market Question
Is Hershey going to be the biggest value play of the year?
This has to be something Buffett would be licking his chops over - and not just because the chocolate is good - Hershey looks like Coke did back in the 80's. Getting hit by competition and internal problems but still has this ridiculous amount of brand equity and consumer reach.
My only question is, when do we buy?
Answers
401 points
WayneMulligan answered 6 months ago …
Hi Creezy,
I thought this was a great question -- so much so that I decided to answer it in a longer article I just posted on the TickerHound blog. The basic answer is, "Yeah, Hershey is a buy (in my opinion), just not right now. It could go lower still but there are a few potential outcomes that could show shareholders some dramatic upside. I'd wait for it to build a base and show some sort of uptrend first". To read the whole article visit the TickerHound blog at: http://blog.tickerhound.com or go to the following address:
http://blog.tickerhound.com/2008/02/24/is-hershey-the-value-play-of-the-year/
Good luck and I hope you enjoy it!
2649 points
EthanR answered 6 months ago …
Good lord, Wayne, don't wait too long! HSY may well have bottomed on January 25th at 34.00 on heavy volume. Since then, it has all turned around. The MACD has turned up nicely and is approaching the zero line. The RSI has also turned up and is approaching 50. The stock looks like it is about to take out the 50 day moving average. Upside volume has been good. From what I can see technically, it all looks pretty solid!
As for the disadvantages you listed, while they may not be an international play now, that doesn't mean they won't be in the future. Price fixing investigations have a way of petering out with no more than a slap on the wrist. And have you seen America's children and teenagers lately? Fat, fat, fat! You think they got that way from eating apples?
I say thumbs up to HSY.
