Dr Pepper "Passport to Explore with Indiana Jones and the Kingdom of the Crystal Skull" Promotion Gives Indy Fans the Opportunity to Taste the Adventure of this Year's Biggest Film

Offers to send a mass shipment of naturally delicious 7UP to potential space alien landing sites outside Phoenix and Orlando to prevent - or at least make more pleasant - the widespread eating of humans

'Singing Can' Ad is Dr Pepper for the Ears

*Guitarists Slash and Buckethead Will Not Be Eligible For Free Soda

Jack Stahl, Terry Martin, Pamela Patsley and Anne Szostak to Join Wayne Sanders as Directors Following the Company's Demerger from Cadbury Schweppes

By Jessica Hall PHILADELPHIA (Reuters UK) - U.S. chocolate maker Hershey Co HSY is considering launching a bid of at least $17 billion (10.2 billion pounds) for chocolatier Cadbury Plc CBRY as it seeks to trump a hostile offer by Kraft Foods Inc, a source familiar with the matter said...

By Jessica HallPHILADELPHIA (Reuters) - U.S. chocolate maker Hershey Co HSY is considering launching a bid of at least $17 billion for British chocolatier Cadbury Plc CBRY as it seeks to trump a hostile offer by Kraft Foods Inc, a source familiar with the matter said on Friday.Hershey has lined...

PHILADELPHIA (Reuters) - U.S. chocolate maker Hershey Co HSY is considering launching a bid of at least $17 billion for British chocolatier Cadbury Plc CBRY in an effort to outstrip a hostile offer by Kraft Foods Inc, a source familiar with the matter said on Friday.Hershey, which is still considering...

By Jessica Hall and Victoria HowleyPHILADELPHIA/LONDON (Reuters) - Cadbury Plc CBRY suitors Ferrero and Hershey Co HSY have weighed breaking the UK confectioner up into separate businesses as part of a friendly, all-cash bid, a source familiar with the situation said on Friday.Italian chocolate maker Ferrero and U.S.-based Hershey said...

LONDON/MILAN (Reuters) - Cadbury CBRY suitors Ferrero and Hershey HSY would likely break the UK confectioner up into separate businesses if a mooted bid for the company succeeds, an Italian newspaper reported. Italian chocolate maker Ferrero and U.S.-based Hershey said on Wednesday they were reviewing a possible offer for Cadbury,...

We are presenting a list of companies which we believe are currently mispriced, based on our estimate of fair value, by the market. We develop our fair value ranges by projected free cash flow out one year and estimating an appropriate FCF multiple based on our assessment of risk and the strength of the balance sheet. Cisco Systems (CSCO: 19.57, +0.84 (+4.48%)) Recent Price $17.04 Value Range 21.86 – $38.41 Cisco Systems, Inc. designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use. <span[More...]

With Mars' announcement that it would buy Wrigley (NYSE:WWY), Hershey (NYSE:HSY), long a subject of takeover speculation, is being bandied about as another potential acquisition in the confections industry. The theory is that one acquisition leads to others, as competitors scramble to match the new juggernaut in size.

From a purely business perspective, an acquisition could make sense. Hershey's has been caught on the wrong side of the falling dollar, making tasteless, low-grade chocolate that doesn't appeal to anyone outside the U.S. (90% of Hershey's sales are from the U.S.), so it doesn't have substantial international sales that can boost revenue at a time with the dollar is falling and the U.S. is entering a recession. Cadbury Schweppes (NYSE:CSG), which is often mentioned as a potential Hershey acquirer, has global brands but no U.S. presence.

But don't hold your breath. A merger or acquisition would make sense if Hershey was a rational actor, making rational decisions about shareholder value. But the Hershey Trust - a charitable organization that endows a school - controls nearly 80% of Hershey's voting shares and has consistently refused to sell. Betting on Hershey selling is like betting on Sulzburgers' selling The New York Times (NYSE:NYT) - it's not going to happen in this lifetime.

» Read more

Related Concepts:

Commodity Costs

Related Companies:

Wrigley
Cadbury Schweppes
Nestle

The implementation of the Vision into Action plan should stimulate revenue growth and improve the operating margin over time. The company has already become more focused with the purchase of Adams Confectionery and the divestiture of the noncore businesses, especially the European Beverage business. With the de-merger of Americas Beverages expected in May, management will be able to leverage scale and improve profitability by focusing on the faster-growing confectionery business. A Buy recommendation has been reinitiated...by Zacks
about me at marketocracy ...
my funds ...
invest all way through blog
socialPicks
digg
armin's shared items

Word On The Street
The stock market mustered up a rebound after a two-day selling spree on Tuesday. The Dow finished up 65 points and the Nasdaq finished up 21 points. Pete Najarian explained that energy and technology stocks lead the market higher Tuesday. Jeff Macke liked the price action in the stocks Tuesday and he feels the market could be making a bottom. Goldman Sachs Group Inc. (GS) reported a rise in fourth-quarter profits, but the stock fell 3%. Finerman wasn’t happy that Goldman had a big one time gain, but she is still long the stock. She thinks the valuation is attractive at these levels. Najarian loved the earnings numbers and he jumped on the options at $200. Adami explained that it doesn’t matter if he thinks Goldman’s stock is cheap, but the investment bank’s own stock buyback shows they think it’s cheap. Fifth Third Bancorp (FITB) said that it will take a $275 million provision for loan losses which is $135 million more than in the third quarter. Finerman says that Fifth Third is the stupidest bank name of all time. Najarian says follow the best in breed like Warren Buffett who has positions in Wells Fargo & Company (WFC) and U.S. Bancorp (USB). Best Buy Co. Inc. (BBY) reported a 52% rise in profits, but disappoints on their fourth-quarter earnings forecast. Macke says this was a great quarter and he still thinks BBY is best of breed. TD Ameritrade Holding Corporation (AMTD) raises their first-quarter earnings forecast. Najarian says there is nobody better then Ameritrade CEO Joe Moglia. Adami thinks the stock could be getting a bit extended and he wouldn’t go diving into it at these levels. Darden Restaurants Inc. (DRI) reported a 30% drop in second-quarter net earnings on acquisition costs. Macke continues to say avoid buying casual dining stocks. Palm Inc. (PALM) shares fall after the handheld device maker swings to a loss in the second-quarter. Macke thinks Palm can turn it around, but he wouldn’t touch the stock. Najarian says PALM is getting killed by Research In Motion Limited (RIMM) and he would avoid the stock. Apple Inc. (AAPL) announced they’re in talks to sell the iPhone in Japan through NTT DoCoMo. Najarian says the stock pulled back because they don’t have a deal yet. He mentioned the stock is getting cheap and he is looking to buy it. Joy Global Inc. (JOYG) is set to report earnings on Wednesday. Adami thinks the expectations are low and the stock could be a good trade into earnings. Eli Lilly and Company (LLY) Chief Operating Officer John Lechleiter will succeed Sidney Taurel as Lilly’s new CEO. Najarian thinks moving forward Lilly looks great and he likes their franchise of drugs. Adami says LLY is a volatile stock but it could be in a good place. December U.S. equity fund outflows are on pace to be at the highest level since July 2002. Macke says this number only matters when it is at extreme levels and this is an extreme level. He explained this is a contrarian play and in theory it could be bullish for stocks.
Oil Trade
Tradition Energy Director of Market Research, Addison Armstrong, joined the “Fast Money” crew to discuss his take on oil. Armstrong thinks the US economy is slowing down and that will drag the entire world economies with it. He feels that oil will first trade to $100 and that will cause a blow off top before it eventually trades back to $70. Najarian agrees with Armstrong and he feels $100 will be the trigger to sell oil. Dylan Ratigan mentioned that the UltraShort Oil & Gas Proshares (DUG) is a way to play oil from the short side.
Oracle Earnings Trade
Oracle Corporation (ORCL) is set to report earnings after the close Wednesday. What is the trade? CNBC Silicon Valley Bureau Chief Jim Goldman joined the “Fast Money” crew to discuss his take on Oracle. Goldman says that everyone he is talking to is looking for a beat and raise kind of quarter out of Oracle. He mentioned that channel checks are indicating that business is even strong from financial service clients. Goldman explained that if things are good at Oracle then that will bode well for Cisco Systems Inc. (CSCO), Intel Corporation (INTC), Dell Inc. (DELL) and Hewlett-Packard Company (HPQ). Najarian mentioned that options traders are buying the $22.50 calls for every month which suggest to him that stock will move higher. Goldman reminded investors that the key for Oracle going forward will be the firm’s guidance.
Nike Earnings Trade
NIKE Inc. (NKE) is set to report earnings after the close on Wednesday. What is the trade? Macke thinks as a trade he would sell the stock. He says Nike will beat earnings, but he thinks the street will sell the news. However, as an investment Macke thinks Nike is a good hold into the 2008 Olympics. Najarian recommends that investors look to buy Nike on any pullbacks and Adami agreed.
Happy 52-Week High Tribune Company (TRB)
POPS&DROPS
POPS- DreamWorks Animation SKG (DWA) traded up 9% after the firm announced a $150 million buyback. Macke says DWA isn’t going anywhere. Novellus Systems Inc. (NVLS) traded up 3% on unusual options activity. Najarian explained there was some unbelievable options activity in NVLS and something must be going on. Sotheby’s (BID) traded up 8%. The Magna Carta is set to go on sale Tuesday night and it’s expected to bring in $30 million. Adami thinks $30 million is cheap. Cadbury Schweppes plc (CSG) traded up 2% after Nelson Peltz’s Trian Fund confirmed a 4.5% stake in the confectionery firm. Finerman explained that CSG popped because Peltz issued an activist letter. Clearwire Corporation traded up 9% on no news. Najarian speculated that Google Inc. (NASDAQ: GOOG) might make a bid for CLWR. Adobe Systems Incorporated (ADBE) traded up 2% after the software maker reported a 34% rise in sales. Macke thinks Adobe is a good long term buy. Spectrum Brands Inc. (SPC) traded up 1% after the company signed a deal to sell batteries at Disney theme parks. Adami explained that if SPC can’t rally more then a nickel with news like that it doesn’t bode well for the firm. Biogen Idec Inc. (BIIB) traded up 1% rebounding from the slaughter the stock saw last week. Finerman wasn’t impressed. Visicu Inc. (EICU) exploded up 32% after Phillips Electronics bought the firm for $430 million. Najarian says this shows that American companies are on sale. Waste Industries USA Inc. (WWIN) traded up 21% after the company announced plans to go private for $544 million. Macke says deals are picking up.
DROPS- Garmin Ltd. (GRMN) fell 7% after NPD showed that the GPS maker lost market share in November. Finerman thinks GRMN makes a great product, but she can’t get on board with the valuation here. She thinks the stock is going lower.
Face2Face
Al from New York writes, “What do you think the future of E*TRADE Financial Corporation (ETFC) is in light of TD Ameritrade Holding Corporation (AMTD) guiding higher?” Najarian thinks that ETFC is a potential takeover target for Ameritrade. He also disclosed that he is currently long the stock. Frances from North Carolina writes, “How can Jeff Macke say casual dining is dead when Chipotle Mexican Grill Inc. (CMG) jumped 7% Tuesday?” Macke explained that there are too many short sellers in the casual dining stocks and that warrants caution on the sector.
Final Trade
Macke likes Best Buy Co. Inc. (BBY). Adami recommends Oracle Corporation (ORCL). Najarian favors Cypress Semiconductor Corporation (CY).

Word On The Street
The stock market saw a healthy rally on Monday as investors bid up stocks ahead of the Fed meeting set for Tuesday. The Dow closed up 101 point and the Nasdaq finished up 12 points. Guy Adami explained that a UBS AG (UBS) write down of $10 billion helped the market go up on Monday. He thinks bad news is good news until the market shows investors otherwise. Karen Finerman said the market keeps rallying off the same news of a Fed rate cut. She thinks the rate cut is already in the market. Jeff Macke thinks the market is trading off of technicals with the break above 1490 on the S&P 500. Texas Instruments Incorporated (TXN) trades up 5% after hours off a positive mid-quarter update. Najarian says this is a great opportunity to sell TXN. Adami mentioned that he likes Intel Corporation (INTC) above $26 in the semiconductor sector. Washington Mutual Inc. ( WM) cuts its dividend to 15 cents a share, slashes jobs and sets capital infusion. Finerman wasn’t the surprised with the dividend cut. She mentioned that her firm went short MBIA Inc. ( MBI) on Monday and she expects more bad news to come. Adami says he loves U.S. Bancorp (USB) for a bank play because Warren Buffett holds a big stake and the company has no exposure to subprime. Finerman thinks that Citigroup Inc. (C) could be the next bank to cut its dividend. Housing stocks put a in a strong performance Monday as short sellers cover ahead of the Fed meeting. Najarian mentioned that he is seeing bullish options activity in Pulte Homes Inc. (PHM) and D.R. Horton Inc. (DHI). Adami thinks The Home Depot Inc. ( HD) is cheap on valuation and will be the stock of 2008. Finerman likes Lowe’s Companies Inc. (LOW) for their strong balance sheet. McDonald’s Corporation (MCD) hit an all time high on Monday after the burger giant reported that monthly sales went up 8.2%. Macke thinks investors need to own McDonald’s. Adami says as long as McDonald’s can hold onto global growth in Asia, the Middle East and Africa the stock will keep going higher. News out of the American Society of Hematology Conference was moving biotech stocks on Monday. Najarian explained that Celgene Corporation (CELG) had disappointing news at the conference and the stock plunged 14%. On the flip side, Millennium Pharmaceuticals Inc. (MLNM) traded higher after the firm reported positive results for their drug Velcade. Najarian thinks the selling on Celgene was overdone and the stock is presenting a buying opportunity at these levels. Lafarge (LFRGY) announced plans to buy a cement unit from Egypt’s Orascom for $12.9 billion. Finerman thinks a takeover could happen for Texas Industries Inc. (TXI). Najarian also likes TXI and he said keep an eye on Martin Marietta Materials Inc. (MLM). Adami says he loves Jacobs Engineering Group Inc. (JEC) for the firm’s strong backlog. More than two-thirds of US non-cash payments last year were made electronically. Adami says the play here is MasterCard Incorporated (MA).
WORD ON THE STREET VIDEO
America On The Cheap
Foreign companies are quickly moving in to buy American companies off the weak US dollar. What company will be the next target of the overseas buyers? What is the trade? Macke thinks the next plays will be in the entertainment sector. He would look to buy Take-Two Interactive Software Inc. (TTWO) and THQ Inc. (T HQI) for potential takeover plays. Adami mentioned that rumors floating around Wall Street are saying that the mining sector is in play. His pick is United States Steel Corporation (X) for a takeover opportunity. Finerman says her most interesting idea is Tiffany & Co. ( TIF) for an acquisition play. Najarian mentioned that Big Pharma firms like Sanofi-Aventis ( SNY) and Novartis AG (NVS) could be looking to buy biotech companies to improve their pipelines. He also likes Alpha Natural Resources Inc. (ANR) for a takeover play in the energy sector.
AMERICA VIDEO
Entertainment Stock Plays
No end appears to be in sight for the writer’s strike in Hollywood. Which entertainment firms are best positioned to weather the storm and what is the trade? CNBC’s Julia Boorstin joined the “Fast Money” crew to discuss the entertainment stocks. Boorstin explained that if the strike continues through the winter, television programming will start to fell the negative effects for the first quarter of 2008. She thinks The Walt Disney Company ( DIS) and News Corporation (NWS) are diversified the best to weather the storm and CBS Corporation (CBS) could be hurt the most by the strike. Najarian says consumers are going to the internet for entertainment and his play is Google Inc. (NASDAQ: GOOG). Finerman says play internet advertising with ValueClick Inc. ( VCLK). Adami and Macke both like Disney.
ENTERTAINMENT STOCKS
Happy 52-Week High The Bank of New York Mellon Corporation (BK)
POPS&DROPS
POPS- Caterpillar Inc. (CAT) traded up 3% after Bear Stearns made some positive comments on the equipment maker. Adami thinks CAT is cheap and a buy. Cadbury Schweppes plc ( CSG) traded up 1% after Nelson Peltz announced he is teaming up with Qatar to increase his stake in the company. Finerman says Peltz has deep pockets and she likes this news and the stock. LDK Solar Co. Ltd. ( LDK) traded up 29% after the Chinese solar company signed a 10-year deal with a German solar cell maker Q-Cells. Najarian says take some profits. Rite Aid Corporation (RAD) traded up 9% after Lehman Brothers reiterated its $7 price target. Adami explained RAD is a lottery ticket that will pay off. NYSE Euronext (NYX) traded up 3% off a positive Barron’s mention. Najarian says the exchanges are “money printing machines.” Nasdaq Stock Market Inc. (NDAQ) traded up 3%. Finerman says deals keep happening for the exchanges and Nasdaq has momentum. Bankrate Inc. (RATE) traded up 20% after the company reported higher than expected 2008 revenues. Macke says cover your shorts in Bankrate. The Allstate Corporation (ALL) traded up 3% after Barron’s said the firm is undervalued. Adami thinks $50 is the floor for Allstate.
DROPS- Overstock.com Inc. (OSTK) fell 22% after CEO Patrick Byrne said fourth-quarter gross margins might be lower then previously expected. Macke says run away from OSTK. Myers Industries Inc. ( MYE) fell 31% after Goldman Sachs delayed its $800 million acquisition of the plastic and rubber firm. Finerman says it’s a good company but she wouldn’t touch it here. Palm Inc. ( PALM) fell 2%. Macke says run away from this stock.
POPS&DROPS VIDEO
Final Trade
Macke recommends THQ Inc. (THQI). Adami likes U.S. Bancorp (USB) for a play on Warren Buffett. Najarian favors EMC Corporation (EMC). Finerman picked Saks Incorporated (SKS).
FINAL TRADE VIDEO

Tammy DeRosier and Sue Morrison making Observations on the Market

Tom Dorsey ,Tammy Derosier, and Paul Keeton talk about Foreign Currencies

Sue Morrison and Tammy Derosier review recent magazine covers.