Summer Sizzlers

08/04/2006 12:00 am EST


Neil George

Editor-in-Chief, Income Publication and Products, Agora Financial

"Neil George and Ivan Martchev are ‘thinking food’ this summer. While the stock market has been extremely choppy this year, these veteran stock pickers have found some shares that are ‘chewing’ up their competition …

"B&M Baked Beans from our Income Deposit Security (IDS) and Growth Portfolio pick B&G Foods (BGF ASE) supplies home kitchens as well as restaurants and food services companies around the world. Its products range from Ortega brand salsas and tacos to Underwood deviled ham and those great baked beans. The IDS is structured to pay a big 10%-plus dividend from the consistent operating profits as well as from its embedded interest-paying bond. The stock also piles up the gains on top of the dividends. Buy B&G Foods up to 17.

"One of the things we all love pretty much anytime we sit down for a meal or a snack is fat. Growth Portfolio member Bunge (BG NYSE) adds the sizzle to our Portfolio as well to many foods. The Netherlander-American company is the largest supplier of vegetable and cooking oils in the world.

"Trans fats naturally occur in some fats and have been shown to be a big no-no for humans. To solve for this challenge of good taste and safer fried foods, Bunge has begun genetically altering its cooking oil inputs to make the foods we love foods that we can still enjoy. This, on top of the other ag products it produces, such as biofuels, makes Bunge a great buy under 65.

"Three words are synonymous with summer: ice cold beer. Sure, there are plenty of wines, a cold soda pop, or a martini that will complement a burger and beans. But it’s hard to find a more perfect accompaniment to a barbecue or ballpark food than an icy beeror two.

"And certainly nothing beats good beer that has even better returns. Alberta-based Big Rock Brewery (CA:BR.UN TSX) is our king of beers. Big Rock brews a collection of great beers along with hard cider and other beverages. Revenues from its core product lines continue to rise at a multi-year average of more than 20%, which is six times the rate for Saint Louis-based giant Anheuser-Busch.

"And with huge and expanding operating margins and subsequent profits, this Canadian trust spins off big chunks of dividends, equating to a yield of around 7.5%. The stock is also gaining ground, which makes Big Rock Brewery a buy up to US$ 17."

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