Stock Price

Stocks closed at $6.08. Earnings per share growth for the 1st quarter of the year were down 29.8% along with revenue growth 15.10%, but they are number one in the industry in dividend yield. This company must expand their franchise into the east coast, not just in airports but in malls and heavy traffic areas and increase advertising. If they continue the status quo without change, eventually the company will cease or be taken over.

Being compared to Warren Buffet's See's Candies

First thing first stocks ended the week at $5.55 down from the previous week, but I just found a positive article on RMCF. The author of the article talks about how when Warren Buffett bought See's Candies the market is almost the same now and that RMCF has been buying back shares and paying dividends. They make money but they give it back to their shareholders. If you go further and read what else people are saying about the company it is not favorable. I have read a lot on RMCF, they need to get a new CEO and marketing executive. RMCF is running in quick sand, except for the new cobranding they have not built anymore stores. The sell their chocolate for premium prices and differentiate by quality. This must be marketed to customers along with implementing less packaging to become environmentally friendly. I have been to their website and it does not entice me to buy from them. I will give a change in their top management more thought.
http://seekingalpha.com/article/132899-rocky-mountain-chocolate-factory-rocky-mountain-cash-factory?source=yahoo

Stock Price

It ended yesterday at $5.64. Stock prices seem so volatile right now. The news has a big impact on whether the stock market goes up or down. Lately the news has revolved around companies that are seeing a decrease in profits in the first quarter of this year, what we need to talk about is that Hershey actually saw a rise in profits of 20% for the first of this year, because they raised their prices and Easter sales were higher than expected. Sometimes I think that the only thing that makes news in negative information, what every person should see are great ideas happening every where in the world.
http://finance.yahoo.com/news/PreEaster-bounce-helps-lift-apf-15010029.html?.v=4

Deal with Cold Stone Creamery

The stock price went down today to $5.96, but I expect it to go up tomorrow because RMCF and Cold Stone Creamery are starting the 7 cobranding stores for a test run of 1 year. On top of this new deal with RMCF, Cold Stone came out today and said that they had double digit sales increases since February, this is because of a new innovative product "Ice Cream Cupcake". Both companies should see an increase in stock prices because of their franchising together and the products that Cold Stone Creamery are coming out with. I had not heard much about Cold Stone Creamery until about a two years ago, when my daughter in law said that Owensboro had one and it was in her opinion the best ice cream. I have not tried it, but I will now when I go to Owensboro the next time, so that I can try the new ice cream cupcakes.

http://tampabay.bizjournals.com/tampabay/stories/2009/04/13/daily55.html?ana=yfcpc

http://biz.yahoo.com/e/090421/rmcf8-k.html

Price Fixing and Stock Price

It's Friday and it was not a good week for RMCF, their stock price decreased and ended the day at $6.00. The rest of the industry saw an overall decrease for the week, except Tootsie Roll they had a .08% increase.

My news for today is price fixing, last year my teammates and I gave a presentation on Hershey being sued for price fixing, I thought that this had been settled, but it hasn't. Hershey, Mars, Nestle, and Cadbury that control 75% of the US chocolate market shares, are accused of price fixing from 2002-2007. The chocolate companies tried to get the price fixing thrown out of court, but the judge said "no" and told them that they could appeal his decision. Consequently, the US, Canada, Europe, and Germany of looking into whether the price fixing actually occurred. They raised prices three times between 2002-2007 first by 10%, 6%, and 5% and they planned on raising prices again in 2008. I actually believe that the companies did fix the prices, they act like a cartel and then just decided what they would charge and what the output would be. Over the years candy prices have had extreme price increases and there is less chocolate in the package, but overall I do not think will hurt them, because it is not in the news about the price fixing and if the companies are found quilty, they will pay the fines, continue business like normal, offer an apology, but will probably lobby Congress and the judges to keep this quiet or get it thrown out of the courts.
http://finance.yahoo.com/news/Judge-allows-appeal-in-candy-apf-14897349.html?.v=2

http://www.law.com/jsp/article.jsp?id=1202429840615

Falling Stock Price and Cocoa Grinding

RMCF has fallen with the stock market and it closed yesterday at $6.08. I talked earlier about how German cocoa grinders are probably going to have a decrease in grinding and that is what happened they had a decrease of 21.3%. This is really about who the end users are. Germany grinds cocoa for Eastern Europe and Russia, these countries have had a devaluation of their money and the countries are poor. I see these customers as spending money on essential like food, water and a place to stay warm, but countries with larger economies like US, and UK the chocolate is still being bought, because people see chocolate as an inferior good, so our income has decreased, but chocolate is still being savored. Germany is mad because European grinding figures rose .1%, they think something funny is happening, but I don't I think it is the economies of the countries that each grinder supplies.
http://www.flex-news-food.com/pages/23140/Chocolate/Cocoa/Germany/german-q1-cocoa-grind-falls-213-pct-year.html

Small Companies Increase Sales

A small chocolate shop in Jeffersonville, IN is having a great year. They have not had to increase their advertising or marketing of any kind, but they still saw a 10 - 15% increase in sales in the last couple of months. Easter was great for them. The reason is that people know the economy is bad, so they are shopping at local small businesses to keep them going. This is just another article that stresses chocolate is more recession proof than other industries.
http://www.wave3.com/Global/story.asp?S=10164110