Jun. 1 at 8:00 AM
$FLO $BGS Isolating my criticism for these two Food stocks, which are not REITs, and do not hold a legal obligation to pay Dividends. As result, dividend cuts to recapitalize the company and/or pay-down Debt is a BULLISH move because you create the Data and Analyst backing for arguments in support of a higher stock price as result of sparing cash. While there may be sellers in the short term who wanted Div Income rather than Price Appreciation over time, this will merely be rotation in ownership from Income Investors to Momentum Traders. This only happens if the companies tackle debt and when capable - do Stock Buybacks as well. FLO is in the best position of these two, in terms of having the cashflow to buy back shares especially, but FLO has
$1.5 Billion of debt to tackle (although much of that was for a value-added acquisition now paying off). With 37 million shares short, FLO is a Short Squeeze candidate, and when Ukraine war ends, watch how the Wheat market affects FLO positively.
