General Mills
Inc. processes and markets such well known products as Cheerios, Wheaties,
Total, Chex, Betty Crocker, Bisquick, Hamburger Helper, Yoplait and Progresso. The company has grown profits and dividends
at a 9-10% pace over the last ten years earning a 20%+ return on equity. This performance should continue as a result
of:
(1)
an outstanding portfolio of fast growing brands
(2) a steady
pipeline of new products which enhance sales and take market share,
(3) an
aggressive cost cutting program,
(4) expansion
into emerging markets which should account for 70% of food growth though 2012,
(5) acquisitions,
(6) management
is committed to enhancing shareholder value via increasing dividends and share
buy backs.
Negatives:
(1) GIS
international exposure increases the risk of loss from currency fluctuation,
(2) during
periods of economic malaise, consumers tend to trade down to generic brands,
(3) rising
commodity costs.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE
Since 2003 Margin Rating
Chart
Note:
GIS stock made good progress off its March
2009 low, surpassing the downtrend off its August 2008 high (red line) and the
November 2008 trading high (green line).
Long term , the stock is in an uptrend (straight blue lines); intermediate
term, it is in an uptrend (purple lines).
The wiggly blue in is on balance volume.
The Dividend Growth Portfolio owns a 50% in GIS ,
by virtue of having Sold Half for price reasons. The upper boundary of its Buy value Range is
$29; the lower boundary of its Sell Half
Range
9/13
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