Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Text Size
Apr.29
7:06 PM ET
Tuesday, 29 Apr 2008
ConAgra's 'Confident' in Its Business

When ConAgra decided to sell off its commodities-trading division, Cramer figured the market would react positively. After all, the firm was dumping an incredibly volatile business that seemed to scare off some investors. Surely, a pure-play ConAgra would be widely touted by the Street.

Apparently not. The stock’s stuck at $23, and Cramer can’t figure out why. President and CEO Gary Rodkin put the blame on Wall Street, claiming his company has the right formula – a great brand portfolio (Peter Pan, Chef Boyardee, Swiss Miss and others), cost containment and an innovative pipeline of products – to deliver sustainable growth.

“We are very confident in the algorithm that we’ve put forward,” he said.

The deal to get rid of the commodities-trading business isn’t fully completed yet, Rodkin pointed out, but once that’s done he’s confident ConAgra [CAG  Loading...      ()   ] will get back on track.

Rodkin said he’s also sure his company can manage its way through the food-cost pressures, from global demand and government-mandated ethanol, that are hurting so much of the industry.

“Food business is a tough business,” Cramer said. But CAG is cheap, and the stock is priced as if ethanol will continue to drive food costs higher.

“If you think that we are at a peak in the price of food, you buy ConAgra,” he said. “If you don’t, you can’t pull the trigger.”

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 12:56:53 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:32:22 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters