Zacks Analyst Interview Highlights: Hershey Foods, Dean Foods, Anheuser-Busch, UST and Altria

CHICAGO--(BUSINESS WIRE)--Zacks.com releases the latest Analyst Interview. Todays interview is with senior equities analyst Steven Ralston, who discusses Hershey Foods (NYSE: HSY), Dean Foods (NYSE: DF), Anheuser-Busch (NYSE: BUD), UST (NYSE: UST) and Altria (NYSE: MO).

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The problem of tainted milk from China seems to be more widespread than originally thought. Do you see this having a direct affect on companies in your coverage?

Milk is a significant raw material for two of my companies: Hershey Foods (NYSE: HSY) and Dean Foods (NYSE: DF). On September 29th, Hershey issued a statement that the company has never purchased milk from China. Dean Foods owns it own fluid milk operations in the U.S., and may even benefit as consumers move to soy-based products, which the company provides.

Any Sells, and/or general issues to be wary of?

Over the last two years, I have been a table-pounding buyer of Anheuser-Busch (NYSE: BUD) under $50. With the final friendly offer of $70 per share from InBev on July 14th, I finally downgraded the rating to a Sell.

On September 8th, UST (NYSE: UST) received a buyout offer of $69.50 per share in cash from Altria (NYSE: MO), at which time the rating was lowered to a Sell. With the sub-prime crisis spreading to the credit markets, both transactions are in jeopardy of being completed due to financing issues. During declining markets, some investors flock to stocks involved in buyouts as a safe haven. Be wary of these transactions for they may not be completed.

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