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  • Kraft Foods: Time to Put This Cash Cow Out to Pasture? [View article]

    I think that you have been correct regarding your statement of America's unquenchable desire for fatty snacks, but this time could be very different. We haven't had this kind of combination in decades (if ever): Consumer recession, plunging employment, extremely tight access to credit for individuals and no savings. It would seem to me that if ever there was an impetus beyond health concerns, it is now.

    On Jan 10 11:44 AM najdorf wrote:

    > No one ever went broke over-estimating the appetite of the American
    > public for fatty snacks.
    >
    > The reason people like WB like Kraft is that it produces steady cashflow.
    > The debt is a little high, but borrowing costs are low for this company
    > - why not? If they ever finish this restructuring and get focused
    > on incrementally pushing up pricing and share for core brands you're
    > going to see nice steady growth.
    >
    > The stock has been overpriced periodically in the last few years
    > up in the mid-high 30s. In the 20s the dividend makes it worthwhile.
    Jan 10 14:25 pm |Rating: 0 0
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