Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Mondelez's Sugary Valuation Could Cause Wealth Decay

I can understand why investors like Mondelez (NASDAQ:MDLZ). The company is not only #1 or #2 in most of its products and markets, but it has been deliberately assembled to address faster-growing markets in the larger packaged food industry. On top of that, this company has some of the highest exposure to emerging markets in the sector. Yet for all of those positives, I do think investors should be careful about what they pay, as expectations for this company are already pretty significant.

Not Off To The Best Start

While companies will often polish up spin-offs to give them the best possible start, Mondelez has been a disappointment out of the gate. For the second quarter in a...

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