Flowers Foods Stock Buy

Flowers Foods FLO Stock Buy

After  2 months of selling stocks, my buying drought has finally ended. Earlier this week I purchased 200 shares of Flowers Foods, Inc. (NYSE: FLO). I'd never considered Flowers Foods as a potential stock for my portfolio, in fact I'd never heard of the company until earlier this year. FLO has been a popular stock among the Dividend Growth Investor blogging community the past 3-months.

This is how I learned about the company. Captain Dividend introduced me to Flowers Foods in June when he wrote an article about his FLO purchase. Since then, I've watched the stock and I started researching it as a possible buy. Last month, I sold a put at $17.50 that expires in a few days on 8/19. You cannot win them all, and in this case my option is underwater. I made $58.29 on the transaction, but the stock has dropped several dollars since my contract sale on 6/27. I have one day to decide if I want to close and sell another option or let the contract expire and add another 100 shares to my portfolio at a a price higher than market. I want to own around 300 shares of FLO. Because of this, I may take these shares and sell calls to reduce my cost basis. Honestly, I haven't decided what I'm going to do yet. The 200 shares I bought on 8/16 cost me $15.47 per share for a total of $3,100. This purchase adds $128 to my annual dividends.

Flowers Foods Overview

Flowers Foods, Inc. is a producer and marketer of bakery products. The Company operates in two segments: direct-store-delivery segment (DSD Segment) and warehouse delivery segment (Warehouse Segment). The DSD segment's production plant locations include Birmingham, Alabama; Opelika, Alabama; Tuscaloosa, Alabama; Goldsboro, North Carolina; Jamestown, North Carolina, and Oxford, Pennsylvania.

The Warehouse Segment's production plant locations include Montgomery, Alabama; Texarkana, Arkansas; London, Kentucky; Tucker, Georgia; Cedar Rapids, Iowa (mix plant); Cleveland, Tennessee, and Crossville, Tennessee. The Company's DSD Segment operates approximately 40 bakeries that market a range of bakery foods, including breads, buns, rolls, tortillas and snack cakes. The Warehouse Segment produces frozen bread and rolls, and snack cakes. The Warehouse Segment's Company-owned brands include Mrs. Freshley's, European Bakers and Broad Street Bakery. Source: www.schwab.com.

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Disclosure: Long FLO

I am not a certified financial planner.  I am a personal investor and blogger who writes about my personal investing strategies.  Nothing I write should be used by ...

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Rhiannion Stalker 4 years ago Member's comment

Investment Hunting:

II would also like to mention that I do not invest by options, puts, or calls; it's a methodology that I have not studied, though I do 'follow' Richard Berger on Seeking Alpha. And I am mainly a DGI investor interested in a diversified portfolio. I do take 'profit' occasionally on positions that no longer meet the income criteria of my investment.

I am new to the TalkMarkets site and very much liked all the information you have worked to provide on FLO.

Susan Miller 4 years ago Member's comment

Welcome to community! I think you'll like it here.

Investment Hunting 4 years ago Author's comment

I'm a DGI investor first and an #options trader second. I do capture gains during really hot markets. Then I sell options to get the same stocks back at a lower price. This tends to irritate many who follow my blog. Not sure why, it's my money ;-). Best of luck to you.

Rhiannion Stalker 4 years ago Member's comment

Investment Hunting:

Thank You for all the information you have provided on FLO.

I 'jumped the gun' also on buying a quarter position in FLO at 16 +. :- ) Should have paid attention to the fact that the earnings call was the day after the 'news' on the delivery truck contract dispute and FLO had not met earnings for 3 quarters. As with you, I am underweight in this sector for my portfolio. Will consider another partial position purchase on another pullback, but will also be interested in their next earnings call.

I also started a position in HRL on the small pullback in that stock. So bread and meat. Also have been researching CALM (eggs) especially with their different dividend metric, but that may allow for a better entry point in next 2 qtrs perhaps.

Breakfast anyone? :- )

rhiannion

Investment Hunting 4 years ago Author's comment

I almost bought in the $14s but I wanted to see what my option was going to do after earnings. I think we're both ok on entry price here, as long as we hold for a while.