Consumer
Consumer sector stories covering beverage, food, retail, and consumer goods stocks backed by real data.
$750M Buyback: LW Stock Defends Potato Moat
Consumer • Stocks • Consumer Staples • Buybacks • Value Investing • Food Industry
LW stock fell 60% from highs while management authorized a $750 million buyback at $58 per share. The stock now trades at forty two. Four companies control ninety seven percent of the frozen potato market. New processing lines cost hundreds of millions. The barriers are structural. The discount is not.
Four companies control 97% of frozen potatoes. Management bought at $58, stock now $42. Analyst targets imply 54% upside. The moat is structural. The discount is temporary.
60% Discount: Why PRMB Stock Mispriced
Consumer • Beverage • Water • Turnaround • Investing
PRMB trades at 0.89x sales versus 2.3x for the beverage industry. The market prices it as a failing commodity while ignoring the 19% U.S. market share lock-in and Last-Mile delivery moat. Short interest hit 20% of float. The new CEO bought $2 million in shares and labeled the failures self-inflicted.
PRMB trades at a 60% discount to the beverage industry. Insiders bought $3 million in stock after the crash. Shorts hold 20% of the float. When turnaround specialists buy with their own money, the market often catches up.