Wednesday, August 19, 2009


Flowers Foods reported this morning and beat the street by 2 cents. They also reconfirmed 2009 earnings guidance. Perfect. But they also lowered their revenue guidance which was disappointing. They're still growing, quite an accomplishment in this economy, but not getting the bang for their buck out of last year's acquisitions.

The stock market has taken .70 off the price so far this morning. The good news is that it makes my $25 covered calls that expire on Friday a winner. I get to keep the premium and the stock. And I'm still very happy with the company and its prospects. It is still a winner in this downturn and when the economy turns as it continues to grow responsibly and profitably while paying a 3% dividend.

I own quite a few shares so I haven't decided to buy more with this sell off, but I could if it gets more severe. We'll see what the day brings as early morning results are usually driven by day traders and short sellers. The conference call may turn the tide.

Monday I'll sell calls again, reap the premium, and sleep nicely with this outfit.

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