Sometimes This Investing Affair Seems Easy: Consumer Packaged Goods Edition (Gis)

But first, a bit-o memento mori:

We're all victims of our ain hubris at times. 
—Kevin Spacey

Hubris is ane of the cracking renewable resources. 

—P. J. O'Rourke

Every fourth dimension I learn accustomed to depression volatility, similar nosotros were towards the destination of the Greenspan era, too nosotros intend nosotros accept all the levers nether the control... something erupts to remind us that the thought that anybody is inwards command of everything is hubris. 

—Lloyd Blankfein 

All via BrainyQuote

We've been talking for a spell immediately nearly what a lousy delineate of piece of employment organization consumer packaged goods (ex-Nestlé) has become, around links afterwards the jump.

Yesterday ane of the poster boys, General Mills - Kellogg Co, is the other ane nosotros piece of employment equally a proxy for the delineate of piece of employment organization - yesterday GIS reported turn a profit too management's thought of the futurity which elicited a negative reaction inwards the stock:

FinViz

The stock cost is downwards at that spot inwards the lower correct of the chart. They instruct us inwards nautical chart reading schoolhouse "upper correct good, lower correct bad". It was the worst performer inwards the S&P yesterday, downwards 8.9%.
From MarketWatch this morning:

General Mills cost target cutting at to the lowest degree 3 times equally analysts limited surprise, concern afterwards earnings 

General Mills Inc. GIS, +0.71% shares saw its cost target cutting at to the lowest degree 3 times alongside analysts expressing surprise too concern afterwards third-quarter turn a profit were announced. RBC Capital Markets analysts cutting their cost target to $52 from $60 "primarily due to an unexpected increase inwards provide chain too commodity costs." They learn out on to charge per unit of measurement General Mills shares sector perform. Analysts intend General Mills volition last "disproportionately impacted" past times freight costs compared alongside other companies inwards the nutrient sector because of book growth too to a greater extent than "facility-to-facility shipments." Stifel cutting General Mills' cost target to $48 from $57 afterwards a "surprisingly weak" 3rd quarter. They keep their concur stock rating. And J.P. Morgan lowered its cost target to $44 from $54 because they don't intend General Mills management gave investors plenty information to dominion out that around of the problems inwards the 3rd quarter were non-recurring....MORE

Roger that, non plenty information, over.
The stock is at  $45.85 downwards from $59.00 a yr ago, during ane of the bigger equity bull markets inwards history.
The guide chances of course of study was that around mortal equity grouping or Warren Buffett (do I repeat myself?) would swoop (see below) too wreck our fun inwards the curt term precisely perhaps laid a bigger too amend chance downwards the road, sort of an intertemporal no-lose deal,

Previously:
October, 23, 2017
Trouble In Packaged Food Land (K; GIS; MDLZ; NESN)
This is becoming a series, to a greater extent than afterwards the jump.... 
October 3, 2017
The David Says Eat More Packaged Food (and curt the stocks)

Note: that's The David, non around guy named Dave:

He's lonely too wants to a greater extent than people to facial expression similar him.
The large guy was concluding seen inwards "If You Want To Be Happy, Listen Up. Now! option title: The FT's Izabella Kaminska Is..." wherein Ms. K interviewed Robert Lustig, a pediatric endocrinologist at UCSF on neurotransmitters too the deviation betwixt happiness too pleasance too metabolic pathways too all kinds of stuff. And that's the claw for this quick post....

May 25, 2017
Nine of the World's Biggest Packaged Food Companies Have Launched Venture Capital Units
March 7, 2017
M&A In European Food

I'm non certain that consumer packaged goods is the expanse to last in, at to the lowest degree non inwards the the U.S.A. too non based on names similar Kellogg or General Mills.
For a quarter-century those manufacturers ratcheted prices equally though they were tobacco companies precisely people honor it easier to hand upwards their Cheerios than their cigarettes.
The managements milked that approach for pretty much all it was worth so, equally operating entities, they aren't all that attractive precisely someone volition create upwards one's heed the entirely affair left to produce is to property strip or dividend recap the life out of the one-time cash cows.
Top o'the marketplace to ya....