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

Kraft's Cheese Has Already Been Moved Far Enough

When companies announce major spin-offs or splits, they usually promise that the separation will unlock substantial value for shareholders and allow the two businesses to operate better. While time will tell about that latter part, maybe there was some value created in splitting Mondelez (NASDAQ:MDLZ) and Kraft Foods (KRFT). At the current price, Kraft doesn't look like a bargain, nor does Mondelez, as both seem more overvalued apart than they did together. While Kraft Foods has numerous opportunities to improve performance in the coming years, it looks like the Street has already assumed that one way or another those improvements are as good as done.

A Hint Of A Tough Quarter

Like Mondelez, Kraft hasn't had the...

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