WSJ Sunday article on Food Stocks for profit starved investors

a. consumers are eating out less, giving food companies more opportunity for sales increases

b. strong brands with pricing power should do well

STOCK PICKS

Chris Growe, analyst at Stifel Nicolaus recommends:

a. General Mills

b. Kellogg

c. H.J. Heinz

these companies deserve higher multiples than industry average due to their strong performances, strong brands, and pricing power

Track Stifel Nicolaus’ stock picks at:

http://www.trackthepros.com/categories.php?category_id=110

Alton Stump, analyst at Longbow Research

a. Green Mountain Coffee

b. Diamond Foods

c. B&G Foods

d. Del Monte Foods (SELL)

B&G has attractive brands in sauces and marinades and is buying others at low prices; Diamond has attractive nut business which has been growing and the company has passed costs onto consumers.

Track Longbow’s picks at:

http://www.trackthepros.com/categories.php?category_id=1188

Jonathan Feeney, analyst, Wachovia

a. TreeHouse Foods

b. Ralcorp Holdings

c. Smithfield Foods

d. Tyson Foods

private label companies are well positioned to grow as the bottom 40% of earners are moving to private label foods. TreeHouse is a pricing leader, and Ralcorp reported strong Q2 in May. Tyson and Smithfield should benefit from strong global food demand.

Track wachovia’s stock picks at:

http://www.trackthepros.com/categories.php?category_id=529