HORMEL, (NYSE: HRL) is reporting earnings next Tuesday, 11-25-08 and the BUZZ is cooking over a can of SPAM all over the Internet. I just could not get my mind off those cans of SPAM while shopping two weeks ago. I don't know why but I was drawn to them and then I began tracking the stock and reading up on Hormel. Then the NY Times comes out with their take this weekend. To weird. So I bought some today, stock in Hormel that is. It makes more sense to me than solar plays while oil falls. It makes even more sense that the stock went the opposite direction of the markets today. I like that. Yes it's only one day. Americans are buying more SPAM that is a fact.
Falling corn futures prices are going to help Hormel's bottom line in 2009 IMHO. Heavy demand for SPAM will help their bottom line as well. Falling fuel prices will help Hormel's bottom line. Unemployment increases, bankruptcy filing increases, and credit card default increases in 2009 will all help as people must trim back on spending further. The trend is already being reported as fact by the company itself in it's struggle to meet demand. Desperate times will demand people buy cheaper foods to fill hungry stomachs. Rice and beans, macaroni and cheese, and SPAM fill you up and these products can feed big families on the cheap.
This reminds me of the run on coal and how Massey, MEE, spiked in a years time when I reported it a huge buy last fall.
I am just have zero fear on this one.
I like the research above this man has done on HRL.
VFRTXN
