Conagra Expects Higher 2007 Earnings

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Conagra Expects Higher 2007 Earnings - What Does Neubert Do?

Written by David Neubert

ConAgra Foods, Inc., (NYSE: CAG - $25.67) expects to report higher-than-projected earnings per share for fiscal 2007. ConAgra expects fiscal 2007 earnings per share to be above the high end of the $1.28-$1.33 range it had previously announced. The consensus is $1.34.

So what's Neubert doing with his Conagra?

I just keep holding my position. After the company lowered the dividend my yield is only 2.8%, but earnings are turning around and I'm looking at a p/e under 20. If the stock were to go up much more ($27.00-$30.00) I'd definitley start selling, but I wouldn't sell everything. I still think Conagra Foods could be nicely managed (owned) by Kraft Foods (KFT - $33.44). And with Kraft Foods on the rise, their currency keeps looking better relative to Conagra (see Kraft Foods to go on Acquisition Spree?)

David Neubert in Milton, PA at Chef Boy Ardee Disclosure: I own Conagra. I bought it as a value play and it has proven to stay value and really lagged the market. I may sell Conagra, as described above. I have eaten Chef Boy Ardee Ravioli (A product of Conagra). I stopped at a dinner next door to the Chef Boy Ardee Factory in Milton, PA on my recent cross country drive (see photo). Canned Ravioli is great while camping. I own Kraft Foods (KFT) and am also short 32.50 strike puts in KFT.