A Delicious New Price for ConAgra

Well-loved brand names provide a solid moat for packaged-food maker ConAgra (CAG). In addition, the company bought Ralcorp Holdings last year, a move that added revenue while allowing for substantial cost savings over time. .

That said, on Tuesday management issued a surprise announcement of reduced guidance for fiscal years 2014 and 2015 (ending May 2014 and 2015) -- and that drove shares down by some 6%, to $29.08, by the session's finish. This stock had been as high as $37.28 last year on enthusiasm for the deal.

Did ConAgra's brands decline sharply in value? No. Did management say it could no longer expect to see cost synergies from the Ralcorp acquisition? No. Tuesday's main message was that pricing was weaker than projected. Guidance for fiscal 2014 was cut by only about 5.5%....306 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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