Savvy Trades and Investments

[SSKILLZ1]

CAG

Sold CAG today at $22.43, here is why I sold.

1) SJM had horrible guidance which is not a positive for the space.

2) CAG Has divested several brands which could be a headwind of say .07-.12 in the next FY by my quick calculation since I thought this was a good buy.

3) CAG maybe the most important part was the possible needing to mitigate tariffs from the increase on steel and aluminum tariffs from 25 to 50% that is another headwind to earnings next FY.

End result is before I expected $2.45-$2.55 now I expected $2.20-$2.30 which is not great. Hence with negative eps I don't see the PE expanding to 12x-13x and instead may stay at 10X hence I think FV for the next 12 months might be $22-23, I thought comps would improve next FY now I think they will slightly decline thanks to recent developments. Hence why I sold. All is just my opinion, and I could always be wrong though.