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11/6/2009 4:01 PM

SYSCO Corp (SYY)

CAPS Rating:
*****

The Company through its subsidiaries and divisions distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.

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What the Community Thinks

Total Members

965 Outperforms
32 Underperforms
 

All-Stars

335 Outperforms
6 Underperforms
 

Wall Street

10 Outperforms
0 Underperforms
 

Members bullish on SYY are also bullish on:

Members bearish on SYY are also bearish on:

Ticker Tags

Blue Chip (121), Growth (1896), Defensive (1498), Food and Staples Retailing (42), Large Cap (371), Consumer Staples (231), Income (1520), S&P 500 (500)
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SYSCO Corp At A Glance

Current Price: $26.91
Last Trade Time: 11/6/2009 4:01 PM
Open: $26.68
Previous Close: $26.84
Daily Range: $26.50 - $27.19
52-Week Range: $19.39 - $27.85
Volume: 4,567,053
Market Cap: $15.93B
P/E Ratio: 14.43
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Stock Trends

SYY VS S&P 500 (SPY)

News & Discussion Boards

Top Bull Pitch

Recs

8

SYSCO Corp (SYY)

Avatar Value1000 (88.50) Submitted: 3/20/09 3:19 PM

The distribution business is all about size and scale. Sysco is the undisputed top dog in the industry. The company is investing in things that make it more efficient (i.e. better software, new warehouses, and trucks). This move will allow the company to defend margins. The firm's nearest rival (U.S...More

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Top Bear Pitch

Recs

4

SYSCO Corp (SYY)

Avatar bsteam (< 20) Submitted: 12/07/07 6:00 PM

Margins will continue to be squeezed due to high gas costs and lower sales to restaurants. I think it is a long term buy and DRIP and will outperform in time, just not the next little while. It just depends on your time horizon and goals. I'll be buying on dips and bad sentiment.

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CAPS Members

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Recs

0

 (SYY)

Avatar JJRzut (87.49) Submitted: 11/05/09 7:21 PM : Outperform Start Price: $26.68 SYY Score: 0.04

Nice blue chip on the value side that pays a good divident.

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Recs

0

 (SYY)

Avatar go4buffs (98.13) Submitted: 10/28/09 3:21 AM : Outperform Start Price: $27.64 SYY Score: -3.56

As reported in Fool.com, Sysco is the outright leader in its industry as a food supplier to everything from small to large kitchens.

As the economy tries to pinch pennies out of restaurants, cafeterias, and delis, Sysco's portfolio of low to high end food brands will help meet the need.

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Recs

0

 (SYY)

Avatar jawilde (75.33) Submitted: 10/09/09 3:01 PM : Outperform Start Price: $25.04 SYY Score: 7.45

Low P/E, above average, and growing, dividend and wide moat rating due to its dominance in the food service area makes this an extremently attractive investment.

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Recs

1

 (SYY)

Avatar tekennedy (66.23) Submitted: 10/03/09 2:55 PM : Outperform Start Price: $24.21 SYY Score: 7.03

Sysco is an amazingly run company which is by far the market leader in a highly fragmented market(there is no company close to it and they only have roughly 17% market share) with strong competitive advantages. The company earns spectacular returns on capital with a highly scalable operating structure, leading to the ability to profitably grow for some time. I hope to see them opportunisticly use the billion or so dollars they have to continue their acquisition of smaller companies which has historically earned high returns. The 2 concerns which I would potentially have would be 1) a general reduction in eating outside the home, 2) increasing number of chain restraunts as a percentage of total restraunts.

1) There has been an overall longterm trend over time toward more dollars going toward eating out of the house. From 1972 to 1998 the share of dollars going to food away from home increased from 37% to 50% and hadn't materially changed until 2008 when it declined to 48%. If this is the beginning of a longterm trend there wouldn't be a huge immediate impact on Sysco as their revenue would decline as a percentage of food sold. The greatest impact would be on Sysco's customer's, small restraunts, whose profits would decrease rapidly and could lead to a number of companies going out of business. This would be a hit to longterm sales and receivables.

2) A switch to a larger percentage of chain restraunts would lead to lesser profitability. Sysco serves these customers through their SYGMA segment, which has been a drain on profitability as these customers have much greater bargaining power resulting in much lower margins(losses in some years). I don't consider a change such as this to be horrible as further consolidation of distributors may allow for greater pricing power and at worst it only shrinks the available (profitable) market.

These risks are being priced into the stock far beyond what is warranted(the risk talked about far more is the risk of consumers eating in home). The company has taken steps to help improve performance(by reducing invested capital and slightly reducing cap.ex.) and reduce risk(decreased accounts recaivable as a percentage of sales) which should help through the lean times. Even though this company won't trounce the market (don't expect more than a double unless you plan on holding for a considerable time) it should outperform the market over time.

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Recs

0

 (SYY)

Avatar kevinsteeves (56.09) Submitted: 10/02/09 1:24 PM : Outperform Start Price: $24.25 SYY Score: 6.96

Low P/E, good dividend

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Wall Street

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Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackHillman 91.15 02/27/09 Outperform 1Y $20.74+29.76%+47.28%-17.52 Toggle the visibility of 60-Second Pitch and replies
TrackJimCramer < 20 09/26/08 Outperform 3W $31.71-15.14%-9.06%-6.09
TrackRichAster 91.10 06/17/08 Outperform 1Y $28.64-6.05%-18.86%+12.81 Toggle the visibility of 60-Second Pitch and replies
TrackPatDorsey 80.29 03/14/08 Outperform 5Y $25.86+4.04%-13.86%+17.91
TrackPiperJaff 80.38 01/29/08 Outperform NS $26.47+1.65%-17.74%+19.39
TrackDodgeCox 86.63 12/31/07 Outperform NS $29.06-7.41%-23.64%+16.23 Toggle the visibility of 60-Second Pitch and replies
TrackCitigroup 21.22 08/28/07 Outperform NS $30.99-13.16%-22.84%+9.68
TrackMichaelSivy 90.71 03/20/07 Outperform 1Y $31.10-13.46%-19.66%+6.19
TrackMatrix 89.45 02/12/07 Outperform NS $31.32-14.07%-21.00%+6.93
TrackHSBC 90.60 08/17/06 Outperform NS $26.99-0.31%-11.21%+10.90

Results 1 - 10 of 10  

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