Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 19, 2010

Article Excerpt

DEL MONTE FOODS CO., $17.51, New York symbol DLM, jumped 11.5% on Friday. That’s because of media reports that private equity firm KKR & Co. (New York symbol KKR) will soon launch a takeover bid for the company. KKR’s offer could be as much as $18.50 a share. Del Monte makes canned fruits, vegetables, sauces and soups. It also makes pet food under the Meow Mix, 9Lives and Milk-Bone brands. Even if an offer fails to materialize, we still like Del Monte’s long-term prospects. Cost cuts continue to increase its profitability. As well, it has plenty of room to expand in developing countries. Right now, international markets account for just 6% of its sales. Del Monte is a buy. BHP BILLITON LTD. ADRs, $86.49, New York symbol BHP, has dropped its hostile takeover bid for Potash Corp. of Saskatchewan (New York and Toronto symbol POT). The Canadian government recently said it would block the takeover. That’s because the government decided that the deal…