The way consumers are feeling these days you would think Herbert Hoover was president. Well, tough times call for some careful consumer trades, says Fast Money resident retail analyst, Jeff Macke
Whether your favorite restaurant is Red Lobster or Morton's Steakhouse, the economy has casual dining in a funk. Instead, families are gathering around the kitchen table, again.
Don’t believe it? All you need to do is check the results from Hormel and Heinz. Frozen food, pasta sauces and spam (yes spam) are experiencing a surge in demand. It appears the consumer is eating “in”.
What’s the trade?
I like Hormel (HRL), Campbell Soups (CPB), Pepsi (PEP) and Molson Coors (TAP), Macke says. The “agflation” works for these companies as well as the growth abroad. People overseas are eating “more American.”
Tim Seymour is skeptical. The rising prices of commodities should become a problem, he says. I don’t think these companies can keep passing them along, indefinitely.
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Trader disclosure: On Feb.28, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (YHOO), (INTC); Seymour Owns (AAPL), (BX), (DELL), (INTC), (MER), (MSFT), (TMA), (TSL), (SHLD), (SBUX); Seygem Asset Management Is Short (PBR); Seymour Is Short (S); Pete Najarian Owns (AAPL), (BIIB), (C), (MS), (MSFT), (NVS), (XLF), (CSCO), (BKC), (MCD); Pete Najarian Owns (XTO) Calls, (IVN) Calls; Pete Najarian Owns (YHOO) And (YHOO) Calls; Jon Najarian Owns (FRE), (FNM), (GS)