Filed under: Products and services, Consumer experience, Marketing and advertising, Hormel Foods (HRL), Recession
In tough financial times, certain food products and food preparation ideas seem to gain increasing favor with consumers. People try to find ways to prepare nutritious and interesting meals while gaining greater purchasing power from their hard-earned dollars.
Just the other day, some of us bloggers were engaged in a lively email chat regarding some of our tried-and-true strategies for stretching our grocery dollars. As you can guess, ramen noodles almost immediately took center stage. I was entertained with stories of the many ways that the slender pasta can be made quite appealing. For instance, if you take any brand of chunky salsa, cut it 50% with water, add a sliced hot dog and pour the heated mixture over the noodles, it’s really a very delicious and satisfying meal.
As the discussion ebbed, I couldn’t help but be amazed that no one had mentioned SPAM, by Hormel Foods Corp. (NYSE: HRL). Surely, I thought, these people must know about the illustrious history of SPAM! Could they ignore the fact that SPAM has carried literally millions of people though hard times since prior to World War II? Though there is probably a ratio of three SPAM jokes to each one SPAM recipe, the fact remains that Hormel’s SPAM, in all its variations, still sells exceptionally well. It sells even better as times get tough, as indicated by a current Associated Press overview.
The May 28 earnings call from Hormel Foods Corp., as provided by Seeking Alpha, stands as testament to exactly why I like the company. Corporate transparency coupled with deeply thoughtful, knowledgeable and expressive leadership makes this company easy to look into. For the first half of 2008, Hormel Foods Corp. is again performing in defiance of tumultuous economic forces and is referred to by The Motley Fool as an inflation-defeating stock.
You might consider putting Hormel Foods Corp on your list of stocks to float you through this tough phase of the financial cycle. The company’s stock is currently selling at what I would think about to be a mild discount. Analyst consensus on Hormel Foods is currently pegged as a very strong “hold.” At the very least, I can promise you that the idea of purchasing Hormel shares right now would be quite a bit more palatable than a Twinkie sandwich could ever be.
Gary Sattler is a freelance blogger. He has no financial interest in the companies mentioned in this blog post. This blog post was in no way solicited or compensated by Hormel Foods.
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