Selling $GIS Reasons:
- MA200 touched
- Bearish candle confirmation
- Overbought
- Overall bearish trend
High R:R up to 1:5 for second target
Risk 0.5% of capital per trade
GRM trade ideas
GIS short opportunityLooking for a bounce from resistance - rising wedge visible
Order placed - currently unfilled
$41.07 Entry
$42.06 SL
$36.81 TP
UndervaluedGeneral Mills Inc (GIS)
View: Long Term
Uncertainty: Low
Main Confluence: Correction, Financials, New Acquisition
Current Price: 39.82
Entry: $35 per share
Fair Market Value: $57
Undervalued: 30%
Sale Mandate 1: $50
Sale Mandate 2: $60
Sale Mandate 3: $80
General Mills manufactures branded consumer foods, like ready-to-eat cereals, convenient meals, snacks, yogurt, baking mixes, and ice cream, to retail and food-service customers. Its key brands include Cheerios, Betty Crocker, Haagen-Dazs, Pillsbury, Nature Valley, Old El Paso, Annie’s, and Yoplait. The North America retail segment contributed roughly two thirds of sales and above three fourths of operating profits in fiscal 2018. More than 70% of General Mills’ revenue is generated in the United States. The firm is poised to bolster its presence in the natural and organics aisle with its acquisition of Blue Buffalo (now its pet segment), a natural pet food brand.
The acquisition of Blue Buffalo (a natural pet food firm) stands to prop up the firm's top line, as humanization and premiumization trends have fueled 5% compound annual growth for U.S. pet food sales over the past decade, without compromising its efforts to strengthen its bottom line. General Mills is targeting $750 million of annual savings (including $50 million of synergies from the Blue Buffalo deal), or around 6% of General Mills' fiscal 2018 cost of goods sold and operating expenses, excluding depreciation and amortization. This should free up resources to bolster its brand spending, which we view as crucial for the company to restore top-line growth. We expect the firm’s combined expenditures on advertising and research and development will average above 7% of sales over the next decade, versus a five-year historical average slightly below 6%. These investments should help the firm launch new or reformulated products that better resonate with consumers and justify the value (and therefore pricing) of its offerings over private-label fare.
Prices are currently on a correction- bullish run on the intra-week and intra-day time frames. There is a key support/resistance level at $41 -$42 per share which is also in line with the key Fibonacci level. There is also a bearish trend line on the daily time frame, therefore we can expect further downside from $41-$42 per share to retest the 2010 lows of $35 per share. If price re-tests $35 we will seek bullish PA confirmation to plan our entries to our anticipated sale mandates, Fair Value and possible new high of $85 a share. For each target different management strategies will be utilised.
However, if price continues it’s bullish momentum and closes above the bearish daily trendline (above $43 a share) then we will anticipate a retest of the trend line followed by bullish confirmation before entries executed for the upside. As it stands we expect price to retest the 2010 lows before any bullish confirmation arises.
GIS is a buy!Shares of General Mills (GIS) have been terrible to own lately. But they're finally finding support at a major support level (breakout from 2012-2013) at about $41.
They recently acquired Blue Buffalo Pet Foods, which should help drive growth to the bottom line, as the humanization of pets continues to accelerate.
At current prices, it's also sporting a solid 4.4% dividend (54% payout ratio, 5.2% 5-year annual average dividend growth, but new revenue/income streams should give them the ability to grow dividends more significantly going forward).
As a "consumer staple," it's no doubt out of favor... and that makes me like it even more! Buy when others sell, sell when other buy. Right?! :)
The valuation is attractive at 14x 2018's estimated E.P.S., and again, the new revenue/income streams from recent acquisitions should help raise E.P.S. estimates in the next few quarters.
To be fair in my analysis, the PEG ratio is a bit high at 2.3. Also, I've noticed some insider selling, so I'm curious about that. But insiders sell for a ton of reasons, so in and of itself, its not a reason to be scared away, just something to watch.
Option open interest is 22% higher than average, and favors bulls, with 1.2 calls for every one 1 put. I also wanted to point out that the MACD experienced a bullish cross (on weekly chart), so any dips from here should be bought!
Long this name as a core position in a long-term account, as well as long September calls in my trading account.
General Mills Corp (GIS) Price Prediction with Gann and IchimokuI am predicting a bottom out by the date and price shown.
Breakout in $GISFalling wedge breakout. Not sure if this is a warning sign to the overall market seeing strength in staples.
General Mills - Bearish RS & Trends = Continuation Lower to $37The bearish DailyPlay we chose for Wednesday, May 23rd is General Mills (GIS). GIS is part of the Consumer Staples Sector (XLP). Over the last month, XLP has experienced a 1.53% move lower and its 1m and 6m trend turned bearish yesterday and recently bounced lower off its $50 resistance level.
General Mills' 1m and 6m trends turned bearish on 4/18 and recently bounced lower off its $44 resistance level. With a technical score of 1 (out of 10), GIS is a weak stock that will likely trend lower.
As a stop loss, if GIS was to trade above $44 for multiple days, this would invalidate our analysis and suggest getting out of the trade.
OptionsPlay Trade Idea:
Buy to Open 1 GIS Jul 20 37.5/42.5 Put Vertical @ $169 - app.optionsplay.com
Cost: $169
Max Reward: $331
Max Risk: $169
POP: 40.61%
Breakeven: $40.81
General Mills (NYSE: GIS) May 7, 2018GIS is a dividend fortress. The company has been in business for over a 100 years. Due to missed earnings, I believe that the stock has been oversold. This seems to be a good entry point before the next earnings report.
General Mills Climbing up those hills A bullish bet is placed on General Mills (GIS: 58.43$):
1) Bounced off support level at 57.75$;
2) EMA 50 crossed above EMA 200;
3) RSI correcting at lower levels while price at higher ones ( check Black arrows). Indicator that price is in a hurry to resume the uptrend.
Target Price: 60.10$ then 61.30$
Stop level: a 2 days close below 57.75$ and or a 2% Intra Day below it at 56.60$
GIS Creating New WK Demand ZonesFresh WK Demand zone now available on GIS, will be looking to go long if price retraces to there.
Long bias on a stock that is not at all time high's, hard to find right now :)
Happy Trading All!
General Mills: Short Again, or a Looming Breakout?#stock is looking up. Can it clear $58.50 for Bullish turn? $XLP #trading
GIS - Divergence from S&P500GIS is a stock I like for it's stability and dividend, I have owned it since 2009 and will continue to hold as long as the dividend (3.7%) remains stable.
The chart shows a divergence that are linked to the fundamentals of the company. Future Growth is negative and Management appears to be wallowing.
The positive signs:
Ichimoku 4/5 +
rumors of take over from Nestley (premature),
stable on-balance-volume
very little insider trading
ROE is outstanding
The negative:
P/B is above 7, I would like to see it below 5.
My target price for adding is $46 - $47, and I will hold long .
Short at the Teal line, or bottoming action? ..General Mills could be bottoming. $XLP #consumer #staples
Stochastic Divergence TL BounceGIS has moved down a parallel channel to trend line support. The stochastic divergence is signaling a move back up that should happen at the end of this consolidation period.
Buy: 52.00
Stop: 51.00 (Trend Line)
Target: 53.22 - 54.97 (2.35% - 5.71%)
