Are Hershey and Nestle good stocks to buy with elevated cocoa prices starting to come down?
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- Опубліковано 30 тра 2024
- #investingeducation #investing #trading #stockmarket
Hi all,
Weirdly enough, Cocoa futures have been ripping more than Bitcoin has over the last 18 months. This has affected the companies that use Cocoa in their day to day. In this video I talk about why I think cocoa is rolling over, and what companies will benefit from that. Whether its a unknown Swiss company, or #nestle or #hershey and other consumer staples. The shareprice weakness in these names will reverse if input costs turn around. While I don't expect gangbusters returns from any of these names these are all names that you can add on weakness for your long term accounts.
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Cocoa prices and Hershey hedging costs: 00:00 - 15:45
Nestle for the long term account: 15:46 - 31:36
Disclaimer: This video is not trading or investment advice, but for general informational purposes only. This video represents my personal opinions which I am sharing publicly as my personal blog. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of any profit whatsoever is made. In fact, you may lose everything you have. So be very careful. I guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this video, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Watching this video or reading any of my publications, you are agreeing to these terms.
Hi SleepySol, thanks for this video. Similar to this, have you considered looking at Starbucks? You’ll find that coffee prices are in a bull cycle whilst Starbucks is putting in lower highs and lower lows, it’s about to drop off a cliff. Head and shoulders pattern on the daily chart and it’s about to break the neckline.
Fundamentally I’m bearish as there’s increased competition, increasing coffee prices and waning demand in the Middle East and South East Asia, due to their perceived association with the ongoing conflict. I think it’ll be a great time to open a short on Starbucks. I’d appreciate your thoughts. Cheers
I've been long starbucks since 2017 and believe it will get to 180~ by 2027/28. I do agree it seems to be short term bearish but I don't believe its because of coffee prices. They're 90% hedged out about a year. So that won't affect them very much. Demand destruction via ppl choosing other coffee shops in the USA and continued low growth in China are much more bearish
@@sleepysolgood points you raised. I’m more of a technical trader, focussed on the 4hour price analysis. So whilst I have my trade idea, I really appreciate you taking the time out to explain your thesis. I do like it for a long term investment and hope to gain a good entry for an investment. Many thanks and good luck
Head and shoulders confirmed, dump started. I’ll be looking to buy upon confirmation of a market structure change.
@@RoTelnCheese I actually recorded a starbucks/consumer video for Saturday last night (because i'm going to be out of town) and I basically say the same. I think they're still very high quality, they're still worth keeping my long/tax loss harvesting the paper loss (which is what I'm doing now) and then adding to it once it seems to start to base, which I think will be around 68~. The eps explosion once China starts spending will be nuts. Just need to survive until then.
@@sleepysol I agree with your sentiments. It reminds me a lot of Nike, a top brand that has a moat in its respective market. I’ve kept my short open but I’ve also started to accumulate the stock for a long term hold. Sentiment has shifted, everyone said it was a bargain at 90 and they don’t want it in the low 70s. Thanks for your work and good luck
*Promosm*