This is an add-on to my last campbell long chart because I didn't give enough info. I am not long here. I won't go long here. Because of the macro conditions, I think there may be another buying opportunity lower. If I miss the run from here, no sweat. I'm not riskin' nothing.
Let's take a look at the Campbell Soup monthly line chart. No need to get bogged down...
Range bound asset, Near the bottom of the range. Would not mind a small retrace for a more equitable trade TP at the .618 and top of the range. While there is Classic divergence playing out, a small retrace would help make the trade equitable. Would really like the entry if the price went to 45.84.
Watching for entry on a breakout above the .5fib and a retrace support entry at 50.
I meant to publish this Friday EOD @47.53 but got sidetracked.
Initial Target = 618fib @54
Long-term hodl target = 786fib @60
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Hormel Foods is an industrial scale grocery supplier. Similar footprint to that of Campbell's $CPB but with a lower OpEx and higher revenues.
Notably, the company trades at nearly 3x P/S versus Campbell's which trades at 2x P/S.
Both seem like logical, undervalued, consumer staples, though I would see a convergence in this price differential as we come closer...
Recent price volatility says a lot about human behavior, but the long term price chart for Campbell's is relatively lackluster versus others.
No doubt consumer staples and essential items are going to get a boost here with upcoming earnings in Mid-may.
Worth watching. Post-earnings, I'm looking for $53/share.
How do you lose $393 million dollars in one quarter?
Step 1. Run social justice ads that don't work in the consumer staples space, and -
Step 2. Spend more money to put the same poor product in refrigerated and other higher-cost space.
How do you make things even worse?
Step 1. Say your profits are going to fall, and instead of being honest -
Step 2. ...
