Jim's Comments BEFORE the interview:         In the wake of the stunning Wrigley (WWY) bid yesterday, I'm asking myself whether the whole packaged foods group has become too darn cheap... WWY is going out, north of 30x earnings... That's like Google (GOOG). It was trading at 27x earnings, just going in before the Mars company made its bid.

Tonight, I want to figure out what this means for the rest of the group, and what it means for food in general. So, first we're going to take a look at the cheapest of the packaged foods companies that I follow... and the company is named ConAgra Foods, Inc. (CAG)...

CAG is selling its commodities trading business for what is a windfall... $2.1 billion. It will make it more of a food play. This is probably the right move in the long run, although of course, commodity trading has been red-hot and, in light of the WWY bid, it looks better short-term. But the commodities business has been a solid source of profits to this company, as well as a bug-a-boo to its own costs of goods.

It's been a trying time for this company... Food prices... the raw ingredients have gone so high last quarter that... Well, the commodities trading business grew sales at 92% versus 21% for the whole company. But... selling it was a good short-term move, because you're selling it at a high...

Now, let's fall on our swords here... I recommended CAG before... on October 26th of 2006... and March 28th of 2007. We're down... we're down badly. We're down 10% and 6%, respectively.

Why hasn't this worked? We liked CAG, because it was a turnaround story. We thought it could increase profits by saving on costs, but input cost inflation - Wall Street jibberish for higher food prices - threw a monkey wrench into that plan...

Now, CAG is trying to pass on some of the cost increases to consumers... It recently raised prices by 5% across its entire consumer food business. But I don't know if that's enough to keep up with its rising costs...

But then again, CAG is trading at a mere 14.5x earnings. It looks very cheap, especially in light of that WWY bid. I mean, it could catch up to its peers, after it finishes the sale of its commodities trading business... but I'm not entirely sure of which way this stock will go, given the fact that I got it so wrong earlier... The Wrigley (WWY) bid makes me more optimistic, but we never recommend stocks on takeovers here. We recommend stocks on fundamentals.

We need to do more homework, so I need the perfect tutor... I need CAG's president and CEO... Gary Rodkin. He knows the business like the back of his hand. Mr. Rodkin, welcome to Mad Money...