About Del Monte Foods
Del Monte Foods is one of the country's largest and most well-known producers, distributors and marketers of premium quality, branded food products for the U.S. retail market, generating approximately $1.8 billion in net sales in fiscal 2013. With a powerful portfolio of brands, Del Monte products are found in six out of ten U.S. households. Brands include Del Monte®, Contadina®, S&W®, College Inn® and other brand names. The Company also produces and distributes private label food products. For more information on Del Monte Foods, visit the Company's website at
www.delmontefoods.com
.
Looks like if they can penetrate more households, schools with more products especially parents or school buying for children.. potential for huge revenue
short term the price will be stagnant.. 52 weeks closing low was around 58 cents..
They will be changing their financial mth end to April to coincide with USA side. So the next reporting Q4/14 will be May-June and includes USA side's profit. But there is a one-time last charge of $6millon for the acquisition.
Then around May-June will also be the rights issue. The right issue pricing will depend on how the parent company Del Monte Pacific think the share is worth actually.
Then Q1/15 results (results for May, June and July 2014) will be a whole new financial reporting without anymore one-time charges and fully incorporates USA side profit. So around Aug-Sept, Q1/15 will be announced with improved profits due to no more one-time charges finally and profits from USA. Thus u will see price starts to go up at around June-July when the rights issue is completed as ppl expect better profits due to USA side.
Since 80% of the revenue will be from USA, I suspect they may list Del Monte Foods in USA ... Or may attract acquisition interest from 3rd party as Del Monte Foods (USA) is a major brand in USA and with emphasis on healthy eating in USA, Del Monte Foods shd be a good buy at the current level.
We shd see if my analysis is accurate.. TP: 90 cents by around July-September this year...
There could also be a possible scenario where price will be pushed up significantly and rights call followed up. (Shareholders may hope for an attractive deep discount price perhaps like $0.30 rights or company hoping to get a higher price for the rights to get bigger proceeds to pare down debts).
Fake buy queues just now at 64 cents... I think this round is the Big Boys pushing and not genuine buying .. so taken profit and wait for the next round to load.
NextInsight
a hub for serious investors
