SWOT Analysis: Flowers Strengths
Q4 - OE_Strengths
What do you see as Flowers’ particular strengths?
"I think their product line is a strength. They have a very diverse product line. They seem to have gone the way of trying to get into the organic markets as well. They are getting a little bit more involved with not just ‘plain old bread’ like they used to be. So I think they are trying to adapt and appeal to a broader audience, I would guess."
Q5 - OE_Weaknesses
What do you see as Flowers’ particular weaknesses?
"As a shareholder of the company, one of the things I am troubled about is we have seen the law suits regarding the truckers, the delivery people, and how they are trying to be considered sub-contractors, I guess or independent contractors. I don’t think they have …show more content…
"Grupo Bimbo. They get lumped in with staples companies. When I wanted to figure out if we wanted to buy the stock or not, we looked at other staples companies, so Pepsi and Coca-Cola, even though they are a different products, it kind of fits into that product sector."
Q15
Why do you prefer this over other capital deployment options?
"Repurchase shares. At this point I prefer this to other initiatives because they can increase their earnings per share and they can do some bolt on acquisitions, bit I don’t want them to do a large acquisition. And paying down debt doesn’t make a lot of sense, assuming they have a low cost of debt right now. So I like buy backs better because they can increase their earnings per share just by reducing the float out there, the number of shares outstanding, even if revenues stay the same."
Q16
In your view, what can Flowers do to drive shareholder value over the next 12-24 months?
"Well, they could increase earnings per share - they can have some top line growth. But they could also increase the dividend. They could increase the buy backs. I think it is important that they do a combination of things, not just one
What do you see as Flowers’ particular strengths?
"I think their product line is a strength. They have a very diverse product line. They seem to have gone the way of trying to get into the organic markets as well. They are getting a little bit more involved with not just ‘plain old bread’ like they used to be. So I think they are trying to adapt and appeal to a broader audience, I would guess."
Q5 - OE_Weaknesses
What do you see as Flowers’ particular weaknesses?
"As a shareholder of the company, one of the things I am troubled about is we have seen the law suits regarding the truckers, the delivery people, and how they are trying to be considered sub-contractors, I guess or independent contractors. I don’t think they have …show more content…
"Grupo Bimbo. They get lumped in with staples companies. When I wanted to figure out if we wanted to buy the stock or not, we looked at other staples companies, so Pepsi and Coca-Cola, even though they are a different products, it kind of fits into that product sector."
Q15
Why do you prefer this over other capital deployment options?
"Repurchase shares. At this point I prefer this to other initiatives because they can increase their earnings per share and they can do some bolt on acquisitions, bit I don’t want them to do a large acquisition. And paying down debt doesn’t make a lot of sense, assuming they have a low cost of debt right now. So I like buy backs better because they can increase their earnings per share just by reducing the float out there, the number of shares outstanding, even if revenues stay the same."
Q16
In your view, what can Flowers do to drive shareholder value over the next 12-24 months?
"Well, they could increase earnings per share - they can have some top line growth. But they could also increase the dividend. They could increase the buy backs. I think it is important that they do a combination of things, not just one