The company is and will continue to be rock solid. Check out its numbers: It boasts a forward P/E of 18.91, return on equity comes in at staggering 68.29%, and to top it off, this "chocolate champion" still has about $661 million in free cash flow.
Another positive is this: When a stock crosses its declining 200-day moving average on decent volume, that is typically a buy signal. That is what Hershey did the other day. Coming off of a significant decline over the past year, this is a low-risk retry. Long-term holders of the stock know exactly what I mean: the stock took gas for a year and is now showing life. This recent pullback makes for a great buying opportunity.
I am going to buy 10 November 45 calls (HSYKI) using a limit order of $7.20. This trade should not be chased; investors need to be patient and let it come in, because we are going all the way out until November.
Hershey still operates chocolate-manufacturing facilities and an amusement park in the town of Hershey, Pa.
Visitors are greeted by a life-size statue of company founder Milton S. Hershey in the middle of a fountain near the amusement park's entrance. Hershey was just 30 years old when he started the company, and he went on to become not only one of America's wealthiest individuals but also a successful entrepreneur whose products are now known all over the world. (And if you really like chocolate stocks, check out this
for additional ideas.)
Game of Life
As baseball awaits Barry Bonds' next home-run surge, the divisional races become more clearly delineated with each passing week. It looks like the Mets and Braves will battle it out for the top spot in the NL East. In the NL Central, the young Brewers have struggled a bit lately, but with the rest of the division playing well below .500 ball, they continue to enjoy a comfortable lead.
The NL West is undeniably the best race in baseball with the Dodgers, Padres and Diamondbacks locked in a three-way struggle for the lead.
The Red Sox, still boasting the best record in baseball, continue to maintain a near double-digit lead in the AL East. The Indians, who have been absolutely dominating at home, enjoy a modest lead over the Tigers in the AL Central. Meanwhile, the Angels, riding a recent hot streak, have opened a comfortable lead over the Mariners and the Athletics in the AL West.
Fresh off his
cover shot, LeBron James is set to lead the upstart Cleveland Cavaliers against the seasoned San Antonio Spurs, winners of three NBA championships in the past eight years, in Game 1 of the NBA finals tonight in San Antonio. Led by steady superstar Tim Duncan, the Spurs also have bona fide stars in Tony Parker and Manu Ginobili, as well as excellent role players such as Bruce Bowen and Fabricio Oberto. Moreover, the Spurs have arguably the best maestro in the NBA in coach Gregg Popovich.
On the other hand, the Cavaliers have the magnificent King James and his relatively anonymous troop of supporters. Mike Brown, as Popovich's understudy for three years, is the Cavaliers' coach. On paper, despite LeBron's potential to win games single-handedly (witness Game 5 against the Pistons), Cleveland would appear to have a significant uphill battle ahead of them. Nonetheless, that is why they play the games. Ultimately, "the paper" does not always dictate the winner.
On the frozen pond, the Anaheim Ducks, formerly the Mighty Ducks, lived up to their previous moniker as they defeated the Ottawa Senators to hoist their first Stanley Cup. Ashamedly, the vast majority of Americans cannot name a single player on either team.
Across the pond, a bullet train's ride from London, The French Open at Roland Garros in Paris finds Roger Federer and Rafael Nadal, No. 1 and No. 2 in the world, on a collision course for the final. Their ongoing rivalry, fueled by their contrasting styles and mutual respect for one another, is great for tennis.
In an unrelated note, the world record for the consumption of hot dogs and buns was shattered by a 23-year-old project manager for a construction company. Joey Chestnut, whose nickname is Jaws, ate 59½ hot dogs and buns in 12 minutes, surpassing the previous record set by Takeru Kobayashi, the Godfather of competitive eating.
The Players Club recognizes athletes who are labeled "hot dogs," the legions of fans who consider hot dogs part of the sports culture, and even "athletes" such as Joey Chestnut who consume hot dogs in a fashion that gives new meaning to the term indigestion. Regardless, by guaranteeing recurring cash flow through our strategic partner, The Players Club endeavors to eradicate that awful feeling of nausea and chest discomfort that arises when money is no longer readily available to professional athletes.
Always remember: Life is a journey, enjoy the ride!
At the time of publication, Dykstra had no positions in stocks mentioned.
Nicknamed "Nails" for his tough style of play during his Major League Baseball career, Lenny Dykstra was an integral member of the powerful Mets of the mid-1980s, including the world champion 1986 squad, and the Phillies in the early 1990s.
Today, Dykstra manages his own stock portfolio and serves as president of several of his privately held companies, including car washes; a partnership with Castrol in "Team Dykstra" Quick Lube Centers; a state-of-the-art ConocoPhillips fueling facility; a real estate development company; and a new venture to develop several "I Sold It on eBay" stores throughout high-demographic areas of Southern California.