Subscription: Value Stocks
BGS - looks having bottomed
B&G Foods, Inc. manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico.
A month ago I first pointed your attention to BGS that was about to enter my Green Target Box.
You can read the original post here: https://www.castawaytrader.com/upd_value/gbs-6-27-19/
BGS bottomed at 17.76 on 7-26-2019. Last Friday, on August 2, 2019 BGS added 11%.
I will be looking at intraday charts to find a good entry in case it gives us any corrective a-b-c pullback after that spike.
The decline that started off the top made at 52.84 in July 2016 was structured as a corrective (A)-(B)-(C) patter n and looks very completed.
Completion of a textbook (A)-(B)-(C) down corrective pattern implies another impulsive move targeting new all time highs.
BGS - weekly chart updated on 8-3-2019
Financial Strength
This is a profitable company with Net Margin equal to 10%. Its management team is efficient in reinvesting profits which is confirm by solid Return on Capital equal to 45%. It has a manageable debt equal to only 1.9 EBITDA. And it has an attractive valuation under 10 x Free Cash Flow. And the cherry on this cake is crazy dividend yield of 9%!
Operating Margin
9
Net
Margin
10
Return on Capital
45
Price-to-Free-Cash-Flow
9.35
Debt-to-Ebitda
1.9
Dividend Yield
9.5
Trading is risky. Read this important Disclaimer
HIGH RISK WARNING
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future profits.