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GENERAL MILLS INCGENERAL MILLS INCGENERAL MILLS INC

GENERAL MILLS INC

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UndervaluedGeneral Mills Inc (GIS) View: Long Term Uncertainty: Low Main Confluence: Correction, Financials, New Acquisition Current Price: 39.82 Entry: $35 per share Fair Market Value: $57 Undervalued: 30% Sale Mandate 1: $50 Sale Mandate 2: $60 Sale Mandate 3: $80 General Mills manufactures branded consumer foods, like ready-to-eat cereals, convenient meals, snacks, yogurt, baking mixes, and ice cream, to retail and food-service customers. Its key brands include Cheerios, Betty Crocker, Haagen-Dazs, Pillsbury, Nature Valley, Old El Paso, Annie’s, and Yoplait. The North America retail segment contributed roughly two thirds of sales and above three fourths of operating profits in fiscal 2018. More than 70% of General Mills’ revenue is generated in the United States. The firm is poised to bolster its presence in the natural and organics aisle with its acquisition of Blue Buffalo (now its pet segment), a natural pet food brand. The acquisition of Blue Buffalo (a natural pet food firm) stands to prop up the firm's top line, as humanization and premiumization trends have fueled 5% compound annual growth for U.S. pet food sales over the past decade, without compromising its efforts to strengthen its bottom line. General Mills is targeting $750 million of annual savings (including $50 million of synergies from the Blue Buffalo deal), or around 6% of General Mills' fiscal 2018 cost of goods sold and operating expenses, excluding depreciation and amortization. This should free up resources to bolster its brand spending, which we view as crucial for the company to restore top-line growth. We expect the firm’s combined expenditures on advertising and research and development will average above 7% of sales over the next decade, versus a five-year historical average slightly below 6%. These investments should help the firm launch new or reformulated products that better resonate with consumers and justify the value (and therefore pricing) of its offerings over private-label fare. Prices are currently on a correction- bullish run on the intra-week and intra-day time frames. There is a key support/resistance level at $41 -$42 per share which is also in line with the key Fibonacci level. There is also a bearish trend line on the daily time frame, therefore we can expect further downside from $41-$42 per share to retest the 2010 lows of $35 per share. If price re-tests $35 we will seek bullish PA confirmation to plan our entries to our anticipated sale mandates, Fair Value and possible new high of $85 a share. For each target different management strategies will be utilised. However, if price continues it’s bullish momentum and closes above the bearish daily trendline (above $43 a share) then we will anticipate a retest of the trend line followed by bullish confirmation before entries executed for the upside. As it stands we expect price to retest the 2010 lows before any bullish confirmation arises.
NYSE:GISLong
by SKA-CAPITAL
GIS is a buy!Shares of General Mills (GIS) have been terrible to own lately. But they're finally finding support at a major support level (breakout from 2012-2013) at about $41. They recently acquired Blue Buffalo Pet Foods, which should help drive growth to the bottom line, as the humanization of pets continues to accelerate. At current prices, it's also sporting a solid 4.4% dividend (54% payout ratio, 5.2% 5-year annual average dividend growth, but new revenue/income streams should give them the ability to grow dividends more significantly going forward). As a "consumer staple," it's no doubt out of favor... and that makes me like it even more! Buy when others sell, sell when other buy. Right?! :) The valuation is attractive at 14x 2018's estimated E.P.S., and again, the new revenue/income streams from recent acquisitions should help raise E.P.S. estimates in the next few quarters. To be fair in my analysis, the PEG ratio is a bit high at 2.3. Also, I've noticed some insider selling, so I'm curious about that. But insiders sell for a ton of reasons, so in and of itself, its not a reason to be scared away, just something to watch. Option open interest is 22% higher than average, and favors bulls, with 1.2 calls for every one 1 put. I also wanted to point out that the MACD experienced a bullish cross (on weekly chart), so any dips from here should be bought! Long this name as a core position in a long-term account, as well as long September calls in my trading account.
NYSE:GISLong
by EchoAlphaBravo
General Mills - Bearish RS & Trends = Continuation Lower to $37The bearish DailyPlay we chose for Wednesday, May 23rd is General Mills (GIS). GIS is part of the Consumer Staples Sector (XLP). Over the last month, XLP has experienced a 1.53% move lower and its 1m and 6m trend turned bearish yesterday and recently bounced lower off its $50 resistance level. General Mills' 1m and 6m trends turned bearish on 4/18 and recently bounced lower off its $44 resistance level. With a technical score of 1 (out of 10), GIS is a weak stock that will likely trend lower. As a stop loss, if GIS was to trade above $44 for multiple days, this would invalidate our analysis and suggest getting out of the trade. OptionsPlay Trade Idea: Buy to Open 1 GIS Jul 20 37.5/42.5 Put Vertical @ $169 - app.optionsplay.com Cost: $169 Max Reward: $331 Max Risk: $169 POP: 40.61% Breakeven: $40.81
NYSE:GISShort
by OptionsPlay
GIS - Divergence from S&P500GIS is a stock I like for it's stability and dividend, I have owned it since 2009 and will continue to hold as long as the dividend (3.7%) remains stable. The chart shows a divergence that are linked to the fundamentals of the company. Future Growth is negative and Management appears to be wallowing. The positive signs: Ichimoku 4/5 + rumors of take over from Nestley (premature), stable on-balance-volume very little insider trading ROE is outstanding The negative: P/B is above 7, I would like to see it below 5. My target price for adding is $46 - $47, and I will hold long .
NYSE:GISLong
by poulin.marc