Milling & Baking News - January 7, 2014 - 18

Stock Market Review 

Solid gains for grain-based shares
amid extraordinary bull market
Index up for fifth straight year but lags broader market measures
Continued from Page 1

market. The 23% gain by grain-based
foods shares lagged a 32% gain by the
S.&P.500 and a 38% jump by the Nasdaq composite. The grain-based industry shares were only a little behind
the 26% gain posted by the Dow Jones
index of industrial shares.
Compared to the performance of
various sectors within the S.&P.500,
the grain-based index gain of 23%
barely lagged the 24% gain of the consumer staples sector, which includes
beverages, food/staple retailing, food,
household products, personal products and tobacco. The 32% gain of the
food products subsector easily outpaced the grain-based index.
The grain-based foods index was
outgained by 8 of the 10 S.&P.500
sectors, all but telecommunications,
up 7.8%, and utilities, up 10.3%.
The top performing sectors for the
year were consumer discretionary,
up 44%; health care and industrials,

up 40%; and financials, up 35%.
The 23% gain for the grain-based
foods index was not skewed by outsized performance of a handful or
even a few of the largest companies
in the index. In fact, not one of the 26
companies included in the index sustained a share-price decline in 2013.
Only two of the 26 companies failed
to post a gain of at least 10% over the
course of the year. The median jump
among the 26 companies was 24%.
One company, Flowers Foods, Inc.,
Thomasville, Ga., effected a stock split
in 2013. The 50% stock dividend was
issued in June. The action followed
three-for-two stock splits by Flowers
in 2011, 2007 and 2005. Stock splits
were something of a rarity in 2013. A
CNBC story in December noted that
only 12 stocks in the S.&P.500 split
last year. By contrast, about 100 stocks
split in both 1997 and 1998. (Flowers is
not part of the S.&P.500 index.)
Among companies included in the

Grain-Based Foods Share Index
performance in 2013
High
Low
ADM
$43.40
$24.38
Bridgford
$12.39
$6.04
Bunge
$83.42
$56.20
Campbell Soup
$48.83
$31.22
ConAgra
$37.28
$23.64
Dunkin' Brands
$49.48
$24.35
Flowers Foods (s) $36.25
$12.31
General Mills
$53.07
$36.75
Hain Celestial
$90.78
$33.72
Ingredion
$74.31
$45.30
J & J Snack Food $88.59
$46.73
Kellogg
$67.98
$46.33
Krispy Kreme
$26.63
$5.86
MGP Ingredients
$6.76
$2.98
Mondelez
$42.54
$24.50
Panera Bread Co. $194.77
$135.15
PepsiCo
$87.06
$62.15
Post Holdings
$51.82
$25.34
Seaboard
$2,948.24 $1,805.00
J.M. Smucker
$114.72
$70.50
Snyder's-Lance
$32.49
$21.64
s = stock split during year
18 / January 7, 2014 Milling & Baking News

Close
$43.40
$9.58
$82.11
$43.28
$33.70
$48.20
$21.47
$49.91
$90.78
$68.46
$88.59
$61.07
$19.29
$5.19
$35.30
$176.69
$82.94
$49.27
$2,794.97
$103.62
$28.66

Change
$16.01
$2.77
$9.42
$8.39
$4.20
$15.02
$6.00
$9.49
$36.56
$4.03
$24.71
$5.22
$9.91
$1.77
$9.85
$17.86
$14.51
$15.02
$265.09
$17.38
$4.54

Per cent
change
58.5%
40.7%
13.0%
24.0%
14.2%
45.3%
38.8%
23.5%
67.4%
6.3%
38.7%
9.3%
105.7%
51.8%
38.7%
11.2%
21.2%
43.9%
10.5%
20.2%
18.8%

Year end
Price to
earnings Dividend
ratio
yield
19.5
2.2%
22.9
0%
NA
1.5%
35.7
2.9%
20.4
3.0%
37.4
1.6%
19.6
2.1%
18.6
3.0%
34.6
0%
13.4
2.5%
26
1.4%
5.7
0%
23.4
3.0%
56.7
0%
77.5
0.9%
23.1
1.6%
26.7
0%
19.5
2.7%
43.2
0%
14.6
0%
31.5
2.2%

Year-end close for
Grain-Based Foods Share
Index with change from
previous year, 2002-2013
Year
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002

Close
17373.92
14117.60
12154.32
11307.96
10350.06
9146.77
11657.58
11542.79
9687.18
10852.64
9462.92
9918.02

Point
change
3211
1963
846
958
1203
-2511
115
1856
-1165
1390
-487
287

Per cent
change
22.7%
16.2%
7.5%
9.3%
13.2%
-21.5%
1.0%
19.2%
-10.7%
14.7%
-4.9%
3%

Grain-Based Foods Share Index, the
widest jump, by far, was posted by
Krispy Kreme Doughnuts, Inc., Winston-Salem, N.C., up 106%. The advance represented the continuation of
a remarkable upward surge for Krispy
Kreme shares over the past five years.
The gain followed a 47% jump in 2012
when the stock also was the top performer in the grain-based sector. Krispy
Kreme shares slipped 6% in 2011 but
were up 137% in 2010. At the 52-week
high of $26.63 reached in November,
Krispy Kreme shares were up more
than 2,500% from the stock's low price
reached in February 2009. Net profit for
the company in the first nine months of
2013 totaled about $20 million on revenues of $348 million. Peak full-year
profits at the company were achieved
in 2004 with net income of about $50
million on revenues of $650 million (the
company sustained a $157 million loss
the following year).
Hain Celestial Group, Inc. was a top
performer again in 2013. The company's
shares jumped 67%, the second widest
gain among grain-based foods stocks. It
was the fourth consecutive year of heady
advances for Melville, N.Y.-based Hain
shares, with leaps of 46% in 2012, 36% in
2011 and 59% in 2010. In each of the previous three years, Hain shares were the
second best performer in the grain-based
index. The share gain has been matched
by strength in the company's financial
bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - January 7, 2014

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