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everything in this business comes down to timing take the seemingly positive press release yesterday from mandes quote you can have your cake and eat it too the brand new Junior's Oreo cheesecakes have launched in supermarkets worldwide end quote hey Oreo cheesecake sounds good but the timing couldn't be worse Mones really failed to read the room when they release this new cookie allowing you to indulge in quote a combination of two iconic sweets endot all it did was make the stock a target for the heat seeking missiles anded anything that can be defeated by these new glp-1 weight loss drugs either Oreos nor cheesecake have any appeal to someone who injects himself with wovi or Monaro every week now I don't mean to pick on M these but it it's a great company but it does have a huge number of terrific tasting snack food brands that are rendered meaningless by anyone who takes these new drugs these meds basically remove your craving for sweets when you're taking these things what you really do do need is protein more protein because this class of drugs spares nothing you'll lose 18% of your body mass but that includes a lot of muscle which needs to be rebuilt by having some protein the power of these drugs is finally joining on Wall Street not only have the sellers gotten to meles and Coca-Cola and the PepsiCo they're now attacking Costco and Walmart as places that sell these things and may get less of your dollar I'm not so sure about selling these stocks though the people who no longer buy Oro cheesecakes may use that money to buy something else once everyone recognize that the world's not going to end for Costco or Walmart because a couple of aisles that are by the way very low margin switch from junk food to protein or even soft goods I bet the bus will come back I think the SS could actually end up doing better but there are some real issues here not that long ago smucker announced that it's buying Hostess for more than $5 billion Hostess makes the best junk food in the world I can't think of anything these drugs Target more than Twinkies the ultimate impulse purchase smoker actually got in a bidding war with General Mills over hostes but if they had to do it over again I don't know I think they'd probably pay less for this one anyone who takes these weight loss drugs has no impulse to buy this kind of food it's just not attractive to them now you still have to eat people will still go to McDonald's for certain because it's a bargain but ordering a double cheeseburger are you kidding you can barely finish a single Patty on these drugs you just don't need as or want as much food and once you're filled up they make it feel disgusting to eat more than when you're filled it's just it just doesn't want to fit in your body or to put it simply it's about volume anything where there'll be less volume eating or drinking is a candidate to have its estimate shade and remember these drugs reduce craving for alcohol too given that these food and beverage stocks tend to sell at high price ears multiples for the consistent numbers their valuations might go down the levels more akin to what you pay for companies with inconsistent numbers which of course is considerably less the cyal always get lower multiples all that said to sell a proctor Gable or Walmart because of monjaro and movi makes very little sense to me because these drugs won't impact their overall volume volum Proctor is not even a food company For Heaven's Sake while warmer can just substitute other Goods in these aisles that said if millions of people go on these drugs and their insurance company covers them then they're going to save a lot more money on food to be able to spend on other things hey maybe they'll also spend on experiential things stocks like Disney or Carnival so remember you're going to be able to get an opportunity to buy the nonf food stuff stocks that are being sold here even as you will have to wait before it's safe to buy a PepsiCo or a McDonald's again great companies all in this market though even the chance of a decline brings down the price Journey's multile so please let this hideous process unfold before you try to bottom fish on any stock in the food space man money's back after the break
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