There's been a major shakeup at the company
I've written about
in my column:
The chocolate maker announced Sunday that it has replaced its eight-person board in an effort to spark growth at the firm. The new independent directors will join existing board members Lenny and Robert Cavanaugh, a member of the Hershey Trust Board. David West, who has already been selected to succeed Lenny as CEO, will replace him on the board at the beginning of the year.
This is great news for Hershey investors. Last week, before the market was hammered, shares of Hershey were already on a steady move up, which is a sweet indication of things to come. Even with the market turning your trading screens into an endless sea of red, Hershey held its own and even increased in value again Friday amid investor uncertainty.
And this news is going to launch Hershey; the shares should trade up to the price gap set on the way down from the Oct. 17 low of $44.15 to the Oct. 18 high of $43.75. The news gets better -- because we were able to buy 100 calls at the price of 30 to 40 cents two weeks in a row, we now own 300 calls (equaling 30,000 shares).
With an average cost of $1.43, I had put a GTC limit order to sell at $1.60, just trying to salvage the position. Now the game has changed.
Please pay close attention at the open. Remember, if Hersey opens above $41.50 this morning, the stock should trade up to the price gap set on the way down from the Oct. 17 low of $44.15 to the Oct. 18 high of $43.75.
This is an opportunity for all of you that have followed my recommendations to really score big -- keep your eye on the ball!
Life is a journey, enjoy the ride.
A quick note: I'm currently on a brief hiatus, but as I
wrote about last week
, I will occasionally weigh in with a column when a stock's in the news.
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."