DIV,& GROWTH

Obvious examples abound everywhere: New York Times(NYT), Sara Lee(SLE), Las Vegas Sands (LVS), RF Micro Devices (RFMD) (among so many techs with so much debt), VeriSign(VRSN), Weatherford(WFT) (along with a lot of oil service companies with debt) and most of the restaurant chains, big and small.

Staple stocks that remain bargains tend to carry more risk. Sara Lee (SLE), which reports earnings this week, will cheer the slipping prices of ingredients like wheat, pork and coffee. But it earns a big chunk of revenue in Europe, whose economy is fading faster than the U.S.' and where profits could suffer in the translation back into the strengthening dollar. Still, D.A. Davidson analyst Tim Ramey believes Sara Lee's cost cuts and brand building will begin to pay off this year. With the stock near 11, or 11.5 times 2009 earnings, he has a price target of 18.

5%

takeover target

8/29/2008

From a recent Mad Money show:

"Cramer doesn't like Sara Lee. I don't like management, I don't like the stock, I don't like the earnings. I don't have anything good to say."

Sara Lee (SLE) was upgraded to Market Perform, Wachovia said. Stock now looks fairly valued, following disappointing fiscal third quarter results.

He will sell a position if the price rises to his estimates of intrinsic value, fundamentals deteriorate, a position becomes more than 7% of the portfolio, or he wants to swap a holding for one that's more attractive. Thus, out went Sara Lee (SLE) and Gannett (GCI) last quarter.

JP Morgan said it is cuttig its rating on Sara Lee (SLE) to Neutral from Overweight due to macroeconomic issues. Note current economic slowdown, cost inflation, and possible delays in turnaround in profit margins. Also note reasonable valuation as limiting downside.

stuck in the mud with little upside as currently managed

making turnaround for last 8 years with not much improvement

TASTE GD BUT GIVES ME INDIGESTION

short

Buy what you know and like

pathetic, I've been trying to talk one of my family members out of this for 5-6? years. She bought it 30 years ago so she was sitting on huge profits, which have since been decimated. this and KO are classic examples of the buy and hold and hold and hold foibles. blah blah tax consequences etc. Declining and/or dead $. Like elnk, ironically this thing is so low it may finally be in a position to slowly rise. Key however is the word slow. Since my life expectations do not extend far beyond 100 years I think I have better places to spend my time.

fat and poorly managed from the middle management

dog

dividend

Slow Mover
Fickle consumers