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Jun
23
John Murphy
Concerns about Market Correction Show Appeal of Food Stocks
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Daily, there are more and more articles about how stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) (chart below) have run up too far, too fast. Many commentators feel that a correction is long overdue.  For those who want to stay invested in the stock market but protect against a downturn, food stocks such as Kellogg (NYSE: K), Campbell Soup (NYSE: CPB), and The Original SoupMan (OTC: SOUP) are ideal holdings.

Businesses like Apple, Microsoft, and others are great companies.

But Apple is up more than 50 percent for the last year of market action.  Much of that has to do with the stock split and raising the dividend.  Company executives are also more active in working to raise the stock price. While those are important, a jump in the share price of more than 50 percent is considered by many to be excessive.

That is especially true when it is considered that Apple has a negative growth rate this year for its earnings per share.

But food companies like Kellogg, Campbell Soup,and The Original SoupMan have a much more solid base.  Not everyone will need a new iPhone.  But there will always be a need to eat.  Moreover, that is increasing around the world as emerging markets become more affluent.  When consumer income increases, a more affluent diet is always the first new result.

That will make products from The Original SoupMan more alluring.

The days of high growth for Kellogg, Campbell Soup,and other food industry giants are long gone.  But they should lie ahead for The Original SoupMan.  The Original SoupMan has much more of an appeal to consumers looking for products of a higher quality to go with the higher income.  The whole food sector will benefit from that development.  But companies like The Original SoupMan have much greater potential than the others in this important regard.

 



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