Posts Tagged ‘ heinz ’

Heinz – An Emerging Market Food Leader

May 29, 2012
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Heinz – An Emerging Market Food Leader

Heinz (HNZ) had an Analyst Day on Thursday last week with about four hours of management presentations and Q&A posted on the investor relations section of the Heinz website. This presentation is a wonderful way to understand the Heinz business model and appreciate the strategic vision of the company. Heinz stock had a relatively strong run hitting new all-time highs around $55. Post-results, the shares have pulled back based on fears relating to the extent of reinvestment into restructuring projects, weakness in the frozen entrée category, exposure to Europe, and a near-term reduction in sales expectations as the company is being hit by foreign exchange and focusing on some low hanging fruit margin opportunities. Despite the concerns, Heinz is very well positioned strategically with a number of positives within...

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New York City Taxi Medallion Bubble – Prices Appreciate to $1M

November 8, 2011
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New York City Taxi Medallion Bubble – Prices Appreciate to $1M

Bloomberg recently reported that New York taxi medallions changed hands this October for a record $1 million. There have been a number of reports over the years demonstrating that investment in taxi medallions outperformed stocks, bonds, real estate, and other financial assets. While this may be true, the yield has clearly come way down making investments at the new elevated prices much riskier. Reportedly, a $1M taxi medallion returns $2,500 in profit per month ($30k per year) which amounts to a 3% annual yield. The argument for medallion investment revolves around the regulated supply and recession-proof taxi fare industry dynamics. There is a public company called Medallion Financial Corp (TAXI) which has participated in the bull market. The company offers financing for the purchase of the medallions, has purchased...

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