February 15, 20162Comments

Danger Zone: Post Holdings (POST)

This week’s Danger Zone focuses on another food products business, similar to recent Danger Zone stocks WhiteWave (WWAV) and Snyder's-Lance (LNCE). Large destruction of shareholder value, skyrocketing debt levels, and insufficient returns on invested capital (ROIC) play a part in Post Holdings (POST: $67/share) landing in the Danger Zone this week.

by Kyle Guske II, Senior Investment Analyst, MBA

February 1, 20163Comments

Danger Zone: WhiteWave Foods Company (WWAV)

This week’s Danger Zone focuses on a company with a history of failed acquisitions that operates in a crowded market. Once the rest of the market catches on to the divergence between economic and accounting earnings, this stock is in for a big drop.

by Kyle Guske II, Senior Investment Analyst, MBA

September 21, 20150Comments

Healthy Food Won’t Make Snyder’s-Lance A Healthy Business

Companies often use hollow acquisition-driven growth to mask deterioration in the underlying business, i.e. efficiency. This week’s Danger Zone stock fits this description to a tee. Add in extremely high profit growth expectations and it’s easy to see why Snyder’s-Lance (LNCE) is in the Danger Zone.

by Kyle Guske II, Senior Investment Analyst, MBA