Company insiders and shareholders have at least one thing in common when it comes to a particular company’s stock—they both want to see growth.
Often times this is just a waiting game for you when you own stock. Companies usually have a way of doing things that’s slow, methodical, and familiar.
Just don’t tell that to this big-name company that’s making big moves in order to chase that growth right now…
The Heinz and Kraft Foods merger stole all the headlines last week, but they weren’t the only ones making moves.
The most famous maker of jams and jellies, J.M. Smucker (SJM), isn’t just sitting back and letting its reputation do all the work. Instead, SJM is being aggressive in its search for further growth.
That much is evident by its acquisition of Big Hearts Pet Brands, which makes cat food and milk-bones.
The deal cost SJM about $6 billion in cash and stock in addition to the assumption of debt, but SJM insiders and shareholders alike should like this action.
That’s because this move into pet foods, which is quickly growing as people are spending more on more on their pets, will make SJM 3rd in dog food, 2nd in cat food, and 1st in pet snacks.
While that’s plenty to keep shareholders rightfully happy, SJM also just recently signed a deal to sell Dunkin’ K-cups. This will add to SJM’s current coffee arsenal of Folgers and selling Dunkin’ Donuts ground coffee.
Altogether, here’s the new-look J.M. Smucker according to revenue share:
- Coffee – 32% (Now down from a previous revenue share of 46%)
- Pet food and snacks – 30%
- Jams, jellies, peanut butter, and baking supplies – 21%
- Frozen foods, flour, and canned milk – 17%
Even with these big moves we just discussed, SJM doesn’t plan on slowing down. It has also created roughly 120 preliminary product plans to add to its current firepower.
These are the kind of big moves that earn real growth. But the most important part for investors is knowing when to get in on a good stock. Getting in to early could mean getting stopped out before good movement in stock price, and getting in too late could mean missing out on the big money.
Check your email for an invitation for Stock Code Breaker, which teaches you how to time trades correctly.
