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Earlier today, le Monsieur mentioned that he would he would soon be turning his baleful eye — Barad-dûr-style  –upon some key food and bevvy stocks that he thought might survive the upcoming economic apocalypse.   I thought that somewhat coincidental given a recent visit I’d made to a very specialized niche food business in lovely Colombus, Ohio.

Granted, for large scale exposure, I’ve been buying the Dutch giant Unlilever (UL), mostly for its broad (if bland) array of well known consumer products like Hellman’s Mayonnaise, Knorr Soups, Ben & Jerry’s ice cream, Lipton teas… and even Slim-Fast for phat phucks who might overindulge.   I also really like their dividend in this market — almost 4% as of today’s close, and 60 basis points higher than American rival Proctor & Gamble.

The large behemoth aside, the smaller niche food producer I really like is Lancaster Colony (LANC).  These guys have done it right and I guess I have to ascribe it to management.   About ten to fifteen years ago, they got knee deep in the “glass & candle trade” that was all the rage at the time, thanks to fake Pop Americana crap like “Yankee Candle Company.”   When that business went south after formally enjoying ridiculous margins for years, it crushed the stock over a two year period (1998-2000).   But I have to hand it to LANC‘s management — they got back into the food business in a big way, and now own some of America’s most iconic niche brands, including Sister Schubert dinner rolls and Marzetti salad dressing and sauces, Texas Toast under the “N.Y.” brand.  This weekly chart shows how it’s been very strong on a relative strength basis, and how close also we are to a break out:

 

LANC is also another solid dividend play, with continuous dividends paid or increased since the mid-60’s.    Keep an eye on the $64 mark… if we break from there, it’s off to the races for LANC.   And well deserved.  It’s just a nicely run “under the radar screen” play that will continue to pick up niche brands where they will hold dominant market share.  Dominant market share means pricing power and steady growth.   What more could a citizen ask for in these uncertain times?  Besides, if things get really bad, we’ll all be eating their tasty croutons (yes, they’ve dominant share in that market too).

Bon appetit!

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For now, at least.    It looks the dollar has bottomed for now, and as a result, I will likely be dumping the rest of my AGQ tomorrow.  I will also continue to sell down my overweight positions in EXK, SLW and yes, GSS (which I am overweight for stupid reasons).  Some ANV will go, as well as some IAG and EGO too.  Not a tonne, but I will be raising cashe (sic) munny (sic).

I will also likely sell some other things tomorrow which look overbought despite their not being in the precious metal category.  I shall tell the good gentlepeople of The PPT about that before I make those moves known here in Pikerdome.

What won’t I be selling?   That I will let you know… lucky dogges.   I will not be selling any UPS.

I will not be selling any UL.

I will not be selling any MON.

And I will NOT be selling any TBT.    In fact, I may even add to the latter.

Best to you all, and Merry Kwaanza, Fonzies.

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