Jim Cramer, portfolio manager of Action Alerts PLUS, sat down with research director of Action Alerts PLUS, Jack Mohr, to talk about Tyson Foods (TSN). Tyson is one of two food and beverage stocks in the Action Alerts PLUS portfolio along with WhiteWave Foods Company (WWAV). Mohr says that ‘Tyson Foods has always been known for being in the chicken business’ and traded similar to commodities. ‘But last year it acquired Hillshire Farms: a huge acquisition,’ Mohr said. The Hillshire acquisition included huge brand names like Jimmy Dean, Ballpark, and State Fair, which Mohr says ‘are number one in each of their respective categories.’ Cramer says that it is excellent that Tyson was able to buy Hillshire and that he has been recommending Hillshire for years. ‘Protein is the way of the future,’ Cramer said. ‘I know people think about natural and organic and they should be adding protein to part of the theme.’ But now that Tyson has taken Hillshire under its wing, Cramer says that Tyson ‘has almost cornered the market on protein with this acquisition.’ Mohr adds that before the acquisition Tyson was a wholesaling chicken company with a limited brand selling to big names like McDonald’s. But with the acquisition, they have ‘growth names’ and ‘branded names’ that ‘attract valuations that are 50% to 60% higher than where it is trading right now.’
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