SYSCO Corporation (NYSE:SYY): Things Look Good Finally


Dallas, Texas 06/25/2015 (Financialstrend) – SYSCO Corporation (NYSE:SYY)  stock gained 3.1% in yesterday’s trading session for the first time in nine months after things looked clear on its merger of acquiring $3.5 billion of US Foods Inc. The stock had been range bound since long time. However, there was a spurt in volume in yesterday’s trading session which looks positive for the stock in short-term. Moving ahead the stock has strong support at $36.5 and $33 on the downside where as $40 remains a major resistance.

SYSCO Corporation (NYSE:SYY) takeover of US Foods was blocked by the Federal Judge after concerns emerged that the deal would result in reduction of Competition and will increase the prices for the food commodities. The Federal Judge in Washington granted the Federal Trade Commission’s request to delay the tie-up. Therefore, the blocking of the deal based on the judgment gives a sigh of relief to the potential investors of the company to think twice on the acquisition and on the pros and cons of the deal.

Blocking of the deal gives the opportunity to SYSCO Corporation (NYSE:SYY) to give attention and put  efforts on cost-cutting  and up gradation of technology which was given a back seat due to their  focus on acquisition.

The Federal Judgment has moved the company from uncertainty position to the path of taking right decisions in the growth of the company. SYSCO Corporation (NYSE:SYY) was disappointed with the judgment passed and stated that it would be relooking in to advantages and disadvantages for the rejection of the deal.

After the Federal Judge’s Judgment the case is now with the FTC’s in-house administrative court awaiting for the result.

As the saying goes nothing can stop growth, SYSCO Corporation (NYSE:SYY) is now looking for acquiring smaller business units which can exactly match their existing services and as well increase their business.

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