Hedgeye CEO Keith McCullough is adding The Smucker Company (SJM) to the short side of Investing Ideas. Below is a brief note.
I have no idea why people would be buying "defensive" names whose P&L's are the opposite of defensive right now - they are getting squeezed!
In addition to a name like CF, think Consumer Staples companies who have A) no pricing power and B) rising costs due to inflation)...
The Smucker Company (SJM) looks like this in our Consumables Pro research content:
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Takeaway: Management lowered EPS guidance a quarter after raising it due to higher than expected inflationary headwinds. J.M. Smucker reported FQ1 EPS of $1.90, down 20% YOY, but a penny above consensus expectations. Sales decreased 6%, but in constant currencies excluding divestitures, sales increased 1%. |
Sell the bounce,
KM
