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After several weeks in the top 25 industry rankings, the food-preparation group has a couple of interesting choices for investors and is already a sizable winner. McCormick & Co. ( MKC ), which makes packaged spice mixes, has rallied about 10% from a breakout Jan. 29. Its advance makes it the stock market leader among the 10 stocks in the group. The company was in the news Thursday, when it defended its talks to acquire Premier Foods, a British maker of prepared foods and flavor packages. McCormick has offered 60 pence per Premier share, or about $1.5 billion pounds (more than $2.1 billion). This is the second approach Premier Foods has rejected from McCormick, saying the offer was too low. “McCormick is disappointed that the board of Premier Foods is conducting itself in a way that denies Premier Foods’ shareholders the opportunity to consider McCormick’s highly attractive cash offer,” the Sparks, Md.-based company said in a statement. As it rebuffed the overtures, Premier said Thursday that Japan’s Nissin Foods Holdings acquired a 17.27% stake in Premier from an existing shareholder. The announcement came one day after Premier announced an agreement that lets Premier sell Nissin’s products in the United Kingdom and lets Premier accelerate distribution of its products overseas. While McCormick is the group’s leader, it has a weak EPS Rating from IBD of 57. A more well-rounded choice in the group is John B. Sanfilippo & Son ( JBSS ), which makes packaged nut products and snacks and has a robust EPS Rating of 96. Profit increased 76%, 27%, 34% and 43% in the past four quarters. Sales climbed 9% to 20% in that time. Analysts have noted a growing trend in snacks, as busier lifestyles drive demand for on-the-go options. Better-for-you choices also are a rising segment. The stock is in buy range from the 66.10 buy point of a cup-with-handle base. Shares have stalled after rising as much as 10% from the entry. Yet there are no sell signals on the chart. Blue Buffalo Pet Products ( BUFF ) is a new face in the industry, having gone public in July at 20 a share. The stock is quickly rising along the right side of its first base, a deep cup-shaped pattern with a potential buy point at 28.90. Blue Buffalo makes dog and cat food made with all-natural products such as whole meats, fruits and vegetables. The company says it is the No. 1 brand in the industry’s natural wholesome segment. Fourth-quarter earnings topped expectations as the company’s EPS growth accelerated for the third straight quarter. Sales rose 11% to $265.2 million. The company forecast full-year sales of $1.12 billion to $1.14 billion and adjusted earnings of 72 cents to 74 cents, up 16% to 19% vs. from 2015 results. Scalper1 News
Scalper1 News