People Are Getting High Snorting Chocolate; Time For Chocolate Stocks?
Here's a drug you can sink your nose into. Have you ever considered sniffing chocolate?
A Belgian chocolatier has developed a chocolate shooter which is now being sold in several countries around the world for about $50 each. You can use it to sniff chocolate power mixed with any of a variety of ingredients, such as mint and raspberry or bacon and onions.
So, will chocolate be the new cocaine?
If so, how do you invest in this legal industry?
The best way is through the stocks of chocolate producers. According to the free list of chocolate stocks at WallStreetNewsNetwork.com, there are a dozen candy related stocks to choose from, most of which sell chocolate.
There is, of course, Hershey Co (NYSE: HSY), the largest chocolate manufacturer in North America. The stock trades at 28 times trailing earnings and 22 times forward earnings. Earnings for the latest quarter were up 8.8 percent on a 2.7 percent rise in revenues. The stock's dividend was raised last year, giving it a yield of 2.0 percent.
Another chocolate company is Nestle (OTC: NSRGY), the largest food company in the world. It sells all types of food and beverages, so chocolate is only a small part of the business. The stock trades at 24 times trailing earnings and 23 times forward earnings.
One of this author's favorite chocolate companies is Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF). The stock has a price to earnings ratio of 22 and pays a delicious yield of 3.4 percent. Earnings were up an incredible 37.6 percent on a 13.8 percent boost in earnings.
Disclosure: Author didn't own any of the above at the time the article was written.
Image credit: Public Domain
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