Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 20, 2015

Article Excerpt

CONAGRA FOODS INC., $40.85, New York symbol CAG, rose 5% this week after announcing it will spin off its commercial-food operations as a separate publicly traded company. This new business, called Lamb Weston, sells frozen potatoes and other vegetable products to restaurants and other food makers. It had $2.9 billion of revenue in ConAgra’s 2015 fiscal year, which ended May 31, 2015. The remaining operations will operate as Conagra Brands and will focus on the company’s branded consumer foods, including Chef Boyardee canned pastas, Hunt’s tomato sauce and Orville Redenbacher’s popcorn. It will also hold ConAgra’s 44% stake in the Ardent Mills flour-milling joint venture. In fiscal 2015, these businesses had $7.2 billion of revenue. ConAgra didn’t reveal the details of the split. However, shareholders will not be liable for capital gains taxes until they sell the Lamb Weston shares they receive. The company expects to complete the spinoff in the second half of 2016. OUR RECOMMENDATION: ConAgra is a buy. ConAgra recent coverage Hotline…

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