No. of Recommendations: 12
Hershey Company shares closed at $184.11 Friday, in pre-market at $184.00.
A well respected company that falls into that category of "never seems to get cheap".
The business is doing well lately, as usual.
The stock price has tanked recently, down by more than half since May, and it is now as cheap as its cheapest in ages, a hair under 20 times trailing earnings.
I think the last time it was cheaper on that metric was in 1999 due to a one-time gain of some sort, haven't looked into it.
As an aside, I think the general dumping of junk food companies because of fears of falling sales from appetite control drugs is hilarious.
If this is a firm that you have always wanted to own (a feeling I have had), this certainly seems like a better time than most.
And the straight line 50% drop since May certainly qualifies as falling knife behaviour. It might fall more, but my hunch is that the 2-3 year returns from here will be pleasant.
Jim
