The importance of organic growth is why
, which is as iconic as any brand on the shelves,
has lost investors' trust
And ConAgra's Ralcorp acquisition -- an expensive deal, by the way -- continues to receive plenty of scrutiny.
Management is working to "adjust the mix." This is another way to say that it is reshuffling merchandise to find the "right pricing strategies."
ConAgra says it wants to "improve the Consumer Foods segments sales and profit performance as fiscal 2014 progresses."
That's all well and good. But given the earnings-per-share revision, it also seems as if management wants to sacrifice near-term margin for long-term growth.
Another issue is the company's operating margins. To the extent that management can synergize Ralcorp quickly enough to cut overlapping costs and bring more efficiency to the operation and grow margins, then ConAgra might deserve some patience.
But those are some pretty bold bets, especially given the company's poor history of execution. So before you get too optimistic, I suggest you read the label.
At the time of publication, the author held no position in any of the stocks mentioned
This article was written by an independent contributor, separate from TheStreet's regular news coverage.