The J. M. Smucker Company (SMJ) engages in the manufacture and marketing of branded food products in the United States, Canada, and internationally. Its products include peanut butter, shortening and oils, fruit spreads, canned milk, baking mixes and ready-to-spread frostings, flour and baking ingredients, juices and beverages, frozen sandwiches, dessert toppings, syrups, pickles and condiments, packaged coffee products, and potato side dishes.

The company sells products primarily through brokers to food retailers, food wholesalers, club stores, mass merchandisers, discount stores, and military commissaries, as well as through retail channels, including foodservice distributors and operators, such as restaurants, schools and universities, and healthcare operators; and health and natural foods stores and distributors. The company was founded in 1897 and is headquartered in Orrville, Ohio.

J.M. Smucker has great fundamentals with super return on equity and impressive earnings momentum. Smucker continues to beat Wall Street estimates with their bottom line earnings. The company is the leading marketer and manufacturer of fruit spreads, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and health and natural foods beverages.

Despite an environment where consumer spending is feeling significant pressure, the J.M. Smucker product line still is doing very well.

The underlying equity is showing a solid Elliot Wave-4 buy formation, projecting gains into the $48 per share area over the next few months. J.M. Smuckers has a liquid options market. The options currently extend through July of 2009, allowing the options strategist more than enough time to take advantage of the forecasted opportunity.

Figure 1: Daily Elliott Wave-4 Buy Formation for J.M. Smucker
(Source: Profit Source)
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Happy Trading.

Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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