Full Answer
Is Tootsie Roll a good stock?
Tootsie Roll is a stock most investors seeking income should love. The total dividend yield is over 4% based on a ~1% regular cash dividend and 3% stock dividend. You can sell the stock each year and in effect have a 4% dividend yield. The dividend safety is solid and backed by a net cash position on the balance sheet.
Is Tootsie Roll stock being shorted?
Short interest is the volume of Tootsie Roll Industries shares that have been sold short but have not yet been closed out or covered. As of May 15th, traders have sold 1,700,000 shares of TR short. 11.32% of Tootsie Roll Industries' shares are currently sold short.
Who owns Tootsie Roll now?
Tootsie Roll Industries is an American manufacturer of confectionery. Its best-known products have been Tootsie Rolls and Tootsie Pops. Tootsie Roll Industries currently markets its brands internationally in Canada, Mexico, and over 75 other countries. Tootsie Roll Industries, Inc....Tootsie Roll Industries.TypePublicWebsitewww.tootsie.com11 more rows
Why is Tootsie Roll shorted?
Tootsie Roll was in an even better position than most stocks for a short squeeze because its stock doesn't have much trading volume. Therefore, when short squeezes started all over the market, Tootsie Roll was targeted for a squeeze as well, making the stock spike the most it has spiked in over a decade.
Is Tootsie Roll going out of business?
Tootsie Roll is unlikely to decline sharply going forward. Rather, a long/short fund wants to own relatively higher-quality or cheaper stocks and short sell the inferior paired company against it.
What happened to Tootsie Rolls?
In 1905, Tootsie Rolls upgraded to an actual factory in New York City, but were still delivered to the consumer via horse and buggy. Fast forward to 1968, and Tootsie Roll moved its headquarters to Chicago, where it is still based today.
Is Tootsie Roll owned by Hershey?
Tootsie Roll has acquired several famous confectionery brands over the years, including Cella's Confections, Charms, Andes Candies, and Concord Confections....Two confectioner stocks square off in a battle of dividend fundamentals.MetricHersheyTootsie RollTTM free cash flow margin*11.8%20.5%4 more rows•Feb 18, 2014
What family owns Tootsie Roll?
2015 America's Richest Families Net Worth By 1930, Ellen's family reportedly took control of the company, and in 1962 Ellen and her husband Melvin inherited control. They moved it to Chicago and renamed it Tootsie Roll Industries four years later.
How much is Tootsie worth?
Tootsie Roll Industries net worth as of June 03, 2022 is $2.25B.
What are Tootsie Roll industry challenges?
One of Tootsie Roll's challenges is its pension. Tootsie Roll is part of a multi-employer pension plan called the Bakery and Confectionery Union and Industry International Pension Fund. This fund is 57% funded meaning that its assets are only expected to cover 57% of its projected future liabilities.
Shares of the iconic candy maker got a lift from index changes, but there's a bit more to the story than that
Reuben Gregg Brewer believes dividends are a window into a company's soul. He tries to invest in good souls.
Key Points
This candy maker is a controlled company and that can lead to seemingly small events shifting the stock price in big ways.
What happened
Shares of candy maker Tootsie Roll Industries ( NYSE:TR) were higher by as much as 15.5% at one point this week, according to data from S&P Global Market Intelligence. By the start of trading on Friday, Dec. 10, they were still up an impressive 15% or so. Most of the gains, however, came on Monday, Dec.
So what
After the market closed on Friday, Dec. 3, S&P Global announced that its S&P Dow Jones Indices were making changes. To sum it up quickly, there were a bunch of stocks shifting between the S&P 500 index, the S&P MidCap 400 index, and the S&P SmallCap 600 index.
Now what
Tootsie Roll Industries is an interesting company that, thanks to the material ownership of the Gordon family, tends to operate a little differently than other companies with larger investor ownership. One week's rally or a change in an index is not a good reason to buy this stock.
What happened
Shares of Tootsie Roll Industries (NYSE: TR) were spiking on Wednesday -- yes, I said Tootsie Roll. Historically, this is one of the least volatile stocks on the market. But that's changed in recent days. As of noon EST today, the stock was up 13% but had been up 53% earlier in the session. And it's up roughly 45% just this week.
So what
You've likely become more familiar with the term over the past few days, but for those who haven't, allow me to briefly explain a short squeeze. As investors, we can bet against a company by shorting the stock, profiting when it goes down. But if it goes up, so too does our loss on paper.
Now what
Short squeezes usually need a catalyst -- positive and unexpected news from the company that completely changes the short thesis. But these days, the incredible gains from GameStop 's epic short squeeze have investors searching for stocks with short squeeze potential. That happens to include Tootsie Roll stock.
New York Stock Exchange
The Company is engaged in the manufacture and sale of confectionery products for over 100 years.
Environmental, Social, and Governance Rating
"B" score indicates good relative ESG performance and an above-average degree of transparency in reporting material ESG data publicly and privately. Scores range from AAA to D.
Business Summary
The Company is engaged in the manufacture and sale of confectionery products for over 100 years.
Why is Tootsie Roll a good stock?
Tootsie Roll was in an even better position than most stocks for a short squeeze because its stock doesn't have much trading volume.
Does Tootsie Roll have a short squeeze?
That's the thing with short squeezes, though -- they don't last long. Accordingly, Tootsie Roll's short squeeze was short-lived and ended right at the beginning of the month, ...
Is Tootsie Roll a stable company?
Tootsie Roll makes its namesake candies and many other well-known brands like Dots and Charlestown Chew. It's a stable business but not exactly a hot-growth story. Perhaps that's why many investors were actively betting against the stock through a strategy called shorting.
What is a TR candy?
Photo by robtek/iStock Editorial via Getty Images. Tootsie Roll ( TR) is an American confectionary company. It's most well-known for its namesake candy, though it has numerous other brands such as Andes, Dots, and Dubble Bubble as well.
Why is Tootsie Roll shorted?
It got caught up in the broader short squeeze phenomenon. Tootsie Roll is highly shorted because this a poor business with an underwhelming management team. While it may be a risky short position, there's absolutely no reason to be long TR stock either.
Where did Ian work?
Ian worked for Kerrisdale, a New York activist hedge fund, for three years, before moving to Latin America to pursue entrepreneurial opportunities there. His Ian's Insider Corner service provides live chat, model portfolios, full access and updates to his "IMF" portfolio, along with a weekly newsletter which expands on these topics.
Does Tootsie Roll do conference calls?
Tootsie Roll has a rather underwhelming investor relations site, doesn't do conference calls, and otherwise doesn't do a lot to talk up the company. Admittedly, with a 38x P/E ratio, apparently they might not need to. Still, you get the idea that this company could achieve more under a different ownership philosophy.
Can you short TR against Hershey?
But if you're a sophisticated hedge fund and want to try to reduce your risk, you could short TR stock against your long Hershey position and thus hedge off some risk if the market in general or consumer staples stocks in particular tumble.
Is Tootsie Roll a failing company?
While Tootsie Roll isn't a failing company that faces any imminent financial trouble, it is still a struggling one from a longer-term perspective. Over the past 10 years, Tootsie Roll has seen its revenues decline by 1% per year, compounded, and has witnessed a 2% CAGR decline in free cash flow.
