I am retired and take educated guesses on all things financial.

August 23, 2009

August 23, 2009: Food Processors, A Nutritious Meal

Many investors, including myself, feel that the market is due for a correction. Some predict with the increased national debt, weaker dollar and a Congress unwilling to grasp both, even worse things may occur that will effect our standard of living now and, especially, in the future.

One sector that may withstand a negative outlook are food processors. I used a computer screen to isolate those with anticipated growth of 10-25% next year. All appear stable and quite a few are international in scope. I must admit to having several obscure companies grace my computer screen. I did investigate all of them to a certain degree and without exception they look quite acceptable for investment consideration.

You may decide to explore the companies on this roster for further study and, perhaps, inclusion within the defensive elements of your portfolio. I am.

Lifeway Foods (LWAY) $13.77/ $231m market cap

Inventura Group (SNAK) $2.87/$53m market cap

Maui Land and Pineapple Company (MLP) $6.50/ $53m market cap

Zhongpin, Inc. (HOGS) $11.37/$331m market cap

J&J Snack Foods Corp. (JJSF) $43.81/$809m market cap

Peet's Coffee and Tea (PEET) $27.27/$354m market cap

United Natural Foods, Inc. (UNFI) $26.61/$1.15b market cap

Yuhe International, Inc. (YUII) $5.40/$85m market cap

Flowers Foods, Inc. (FLO) $23.57/$2.2b market cap

Del Monte Foods Company (DLM) $10.36/$2.1b market cap

Kellogg Comnpany (K) $47.35/$18.2b market cap

Archer Daniels Midland (ADM) $28.67/$18b market cap

Sanderson Farms (SAFM) $39.71/$808m market cap

Food processing is not a sexy sector, but it is a great place to hide as others lose their lunch during the next downturn.

The author does not presently hold a position in the above stocks.