NEW YORK (AP) -- Shares of pet food makers and sellers rose Tuesday morning, although an investigation into a contamination that killed pets continued and one company recalled some of its dog treats.
Del Monte stock rose 14 cents to $11.42 on the New York Stock Exchange.
Procter & Gamble shares gained 24 cents, to $63.26 on the Big Board.
Colgate-Palmolive Co., which makes Hills Science Diet, rose 16 cents to $66.22 on the NYSE.
PetSmart Inc., which makes the recalled Authority, Award and Sophisticats brands, climbed 38 cents to $33.26 on the Nasdaq Stock Market. Earlier, shares traded at a 52-week high of $33.34, above a previous peak of $33.
Store brands from Kroger Co., Safeway Inc., and Wal-Mart Stores Inc. were involved in the recall, and all three stocks were up in morning NYSE trading Tuesday. Kroger hit a seven-year high after a Citigroup analyst initiated coverage with a "Buy" rating. Shares added 57 cents, or 2 percent, to $29.12, after earlier trading as high as $29.37. Kroger's previous 52-week high of $28.71 was set March 26.
Safeway shares advanced 23 cents to $37.20 and Wal-Mart shares added 75 cents to $48.15, both on the NYSE.
Anderson Cooper is covering the story tonight on CNN @ 10:00PM
"Was there Insider Trading at Menu Foods?"
QUOTE: Interesting - Menu Foods Stock Trading Volume Mon Mar-26-07 10:33 PM
"This is interesting: "Is it possible that the announcement of poisoned pet food could have been delayed to give those big investors time to get rid of Menu Foods stocks? --- Slowly, so no one would notice. END QUOTE
QUOTE: ... a bit odd - Menu Foods (Lethal pet food maker) trades on the Canadian stock exchange under the ticker symbol MEW.UN. Their average daily trading volume for the past 6 months is around 90,000 shares per day. END QUOTE
QUOTE: This average includes a sell-off of stock after the poison food recall was announced. Prior to that, the stock traded around 20,000 shares per day. Looking at the trading volumes for the stock, there were two big days of very active trading prior to the public announcement of the food recall. One was February 8, 2007 when 400,000 shares were traded. The other was February 5, 2007, when 281,000 shares were traded. END QUOTE
By the way, I found the link to this info from a different discussion group -- never heard of that "DemocraticUnderground" (looks to be a nasty board for the most part)
It's brought into focus how really big this industry is and still growing. Also this problem is not going to cost them much apart from the recall of millions of cans and a few claims which are going to be very hard to prove in most cases. Then all they will pay is the vet bills, no damages.
Anyway most stocks are up this week which might be the reason : )Posted by Gutman
Hi Gina-Good point-I thought of that one to. Poor people won't get much money as long as pets are considered property.
Plus the media and the FDA are still reporting 16 deaths
Makes me ill.
Thanks for the info Helen!
Possibly because the stock went down too much when the news first came out. Now that people see it's less of a catastrophe than anticipated, the price is being corrected.
Also, the companies are so gigantic that the pet food may be relatively minor. Or, there could have been good news from the companies' other activities.Posted by Susan Freiman