Kraft's Split Story Continues In 2012 [View article]
Very insightful comment! Thanks for the feedback.
KFT has been strategically releasing the info and details on the split in increments, but I have not seen much on the exact stock price or yields yet.
I think looking at historic examples (like MO/PM) like you mention is probably instructive. The advisors and board may use some successful splits as models.
We don't have too much to go on with the exact share details other that some of the press releases about the company characteristics. It will be interesting to see how this translates into the new share details.
Kraft's Split Story Continues In 2012 [View article]
To keep the article current via comments:
http://bit.ly/zjqect : 1,600 job cuts related to split; Kraft stock up on positive earnings forecast
And a nice piece in the NY Times business section on marketing related to campaigns for Kraft cheese(s), interesting story for the emerging North American Grocery arm.
The Time Is Now To Take Profits On These 2012 Winners [View article]
I like Masco on the eventual housing turn-around and have been a long term holder. They seem to make several aisles of products at HD. So they also are a decent maintenance & home improvement play, too, but the stock really could take off with the housing market if it rebounds. Not sure when that is coming around, however, so I'll let the 2.6% dividend drip in more shares for now.
On the qualitative side, the WMT in my town offers a lower quality experience than the other retailers (wrong prices, fewer checkers, fit and feel of stores and lots) but it is making some improvements. It may hinge on the particular manager.
There is a price point at which people may not put up with the hassle or negative experience to save a few dollars. This is a potential threat.
Will BofA Succeed? Depends On Its Litigation Strategy [View article]
A potential large settlement may be in the works:
By Rick Rothacker and Aruna Viswanatha
(Reuters) - As the government nears a deal with top banks to resolve mortgage abuses, the Justice Department has begun reaching out to other banks to gauge their interest in joining the wide-ranging settlement, according to a person familiar with the matter.
The DOJ has contacted several nationally chartered banks to determine whether they might agree to terms similar to those in the proposed deal, the person said.
State and federal officials are nearing a settlement with the five largest mortgage servicers - Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc- to resolve allegations of misconduct in processing foreclosures and other issues.
In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the banks will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans.
In recent weeks Justice officials have approached several other banks about joining the settlement, a move that could potentially push up the total price tag.
Kraft's Split Story Continues In 2012 [View article]
8-K just out announcing each team's execs:
GLOBAL SNACKS BUSINESS Irene Rosenfeld, Kraft Foods' Chairman and Chief Executive Officer, who will be Chairman and Chief Executive Officer of the global snacks company, announced the designated executive leadership team for the global snacks company: DAVID BREARTON will continue as EVP and CFO, responsible for financial operations, including accounting and reporting, financial planning and analysis, treasury, tax, audit and investor relations. He will assume responsibility for Information Systems. MARK CLOUSE will be EVP and President, North America, responsible for the company's business in the United States and Canada. He currently serves as EVP and President, Snacks and Confectionery in Kraft Foods North America. TIMOTHY COFER will continue as EVP and President, Europe. SANJAY KHOSLA will continue as EVP and President, Developing Markets. In addition, he will provide oversight to the company's Chief Customer Officer. KAREN MAY will continue as EVP, Human Resources. DANIEL MYERS will be EVP, Integrated Supply Chain, responsible for procurement, manufacturing, engineering and customer service and logistics. He currently serves as EVP, Supply Chain of Kraft Foods Inc. GERHARD PLEUHS will be EVP, Legal Affairs and General Counsel, responsible for the legal, corporate secretary and compliance functions. He currently serves as Senior Vice President ("SVP") and Deputy General Counsel, Business Units, Kraft Foods Inc. JEAN SPENCE will continue as EVP, Research, Development and Quality, responsible for all product and packaging development, research, nutrition, quality, food safety and scientific affairs worldwide. MARY BETH WEST will continue as EVP, Chief Category and Marketing Officer, responsible for the Global Category Teams for biscuits, chocolate, and gum and candy as well as the marketing services functions. She will assume responsibility for corporate affairs. A search is underway for an EVP, Strategy, responsible for the global snacks company's corporate strategy and mergers and acquisitions.
NORTH AMERICAN GROCERY BUSINESS W. Anthony Vernon, EVP and President, Kraft Foods North America, who will become Chief Executive Officer of the North American grocery company, announced the designated executive leadership team for the North American grocery company: DINO BIANCO will be EVP and President, Canada, responsible for all grocery operations in that country. He is currently President, Kraft Foods Canada, which includes both snacks and grocery. DEANIE ELSNER will be EVP and President, Beverages. She is currently President, Beverages. MARC FIRESTONE will be EVP, Corporate and Legal Affairs and General Counsel, responsible for the corporate affairs, legal, corporate secretary and compliance functions. He currently serves in this role for Kraft Foods Inc. MICHAEL HSU will be EVP and Chief Commercial Officer, responsible for U.S. sales, Foodservice, Puerto Rico and export markets, as well as the company's marketing services center of excellence. He currently serves as President, Sales and Customer Logistics for Kraft Foods North America. DIANE JOHNSON MAY will be EVP, Human Resources. She is currently SVP, Human Resources for Kraft Foods North America. TIMOTHY McLEVISH will be EVP and CFO, responsible for the company's financial operations. Tim had previously served as EVP and Chief Financial Officer for Kraft Foods Inc. NICHOLAS MERIGGIOLI will be EVP and President, Oscar Mayer. He is currently President, Oscar Mayer. MICHAEL OSANLOO will be EVP and President, Grocery. He is currently President, Grocery. SAM ROVIT will be EVP, Strategy, responsible for corporate strategy, mergers and acquisitions, and Information Systems. He currently serves in this role for Kraft Foods Inc. THOMAS SAMPSON will be EVP, Business Transformation, responsible for implementing structural and organizational changes designed to provide greater efficiency and effectiveness. He currently serves as SVP of Business Transformation for Kraft Foods North America. GEORGE ZOGHBI will be EVP and President, Cheese and Dairy. He is currently President, Cheese and Dairy. Two other positions will be part of the North American grocery company executive team. EVP, Integrated Supply Chain, responsible for procurement, manufacturing, customer service and logistics. EVP, Research and Development, Quality and Innovation, responsible for product and packaging development, research, nutrition, innovation, quality, food safety and scientific affairs.
4 Utilities With Bond-Like Income Characteristics [View article]
Nice info!
It jogged my memory about a insight I gleaned from some Buffett books: while stocks and bonds have different qualities (debt/equity; priority in dissolution; voting, etc.) from some stand points they are similar.
That is, an investor is--ideally- paying for some future stream of income with both. It comes in regular payments from bonds (or at the maturity) or in dividends from stocks (or the payment instead becomes retained earnings that get plowed back into the company increasing its value to allow tax free compounding, so you defer the payment for a later capital gain).
So I will check if these stocks are in my utility ETF--nice yields and reasonable payout ratios.
Kraft's Split Story Continues In 2012 [View article]
Mabuhay!
I can't think of many scenarios where the split of the company hurts shareholders. Some articles mention less leverage with major retailers (e.g., for getting the best terms and visibility in stores). Maybe there is some necessary duplication of administrative costs from having two of everything (headquarters, human resources depts, boards, etc).
There is always some risk of sibling rivalry-- that one company gets favored and is more likely to succeed and the other gets the leftovers.
The dividing lines look pretty logical and the companies will be different segments.
What gives me some comfort that both will be strong companies is that the current owners (Berkshire Hathaway, Nelson Peltz, CEO Rosenfeld with 845K!) will own shares in both companies. Unless they sell right away after the split, they'll have a major financial stake in seeing both firms succeed, as will all the small investors and institutional owners.
Kraft's Split Story Continues In 2012 [View article]
And on the ground level research--at the grocery store (a Kroger brand store), Kraft had an impressive display of endcaps and special displays for a range of Nabisco products, with many variations on the Newton, Wheat Thins or Ritz theme.
Gevalia was on the end cap, too. And so was Kraft Parmesan Cheese. So was Stovetop. So were Oreos. The Kraft items were everywhere you looked in fact (but then I was also attuned to look for their items). But KFT appears very visible in stores right now as we head into the split.
Similar story at Walmart.
Also, a new story out on debt/bond manuevers before the split.
The Giants, Ravens And 49ers Of Biotech [View article]
Very insightful analysis.
Kraft Foods Is Worth How Much? [View article]
Will BofA Succeed? Depends On Its Litigation Strategy [View article]
http://usat.ly/zvdQpz
Kraft's Split Story Continues In 2012 [View article]
KFT has been strategically releasing the info and details on the split in increments, but I have not seen much on the exact stock price or yields yet.
I think looking at historic examples (like MO/PM) like you mention is probably instructive. The advisors and board may use some successful splits as models.
We don't have too much to go on with the exact share details other that some of the press releases about the company characteristics. It will be interesting to see how this translates into the new share details.
Kraft's Split Story Continues In 2012 [View article]
http://bit.ly/zjqect : 1,600 job cuts related to split; Kraft stock up on positive earnings forecast
And a nice piece in the NY Times business section on marketing related to campaigns for Kraft cheese(s), interesting story for the emerging North American Grocery arm.
The Time Is Now To Take Profits On These 2012 Winners [View article]
Wal-Mart Dividend Growth Stock Analysis [View article]
On the qualitative side, the WMT in my town offers a lower quality experience than the other retailers (wrong prices, fewer checkers, fit and feel of stores and lots) but it is making some improvements. It may hinge on the particular manager.
There is a price point at which people may not put up with the hassle or negative experience to save a few dollars. This is a potential threat.
Denny's Poised To Overcome Demographic Headwinds [View article]
http://onforb.es/wWavO1
Will BofA Succeed? Depends On Its Litigation Strategy [View article]
Dan Freed looks at credit card litigation--another front.
http://bit.ly/xA8AJU
Why Kraft Is More Undervalued Than General Mills Or ConAgra [View article]
Will BofA Succeed? Depends On Its Litigation Strategy [View article]
By Rick Rothacker and Aruna Viswanatha
(Reuters) - As the government nears a deal with top banks to resolve mortgage abuses, the Justice Department has begun reaching out to other banks to gauge their interest in joining the wide-ranging settlement, according to a person familiar with the matter.
The DOJ has contacted several nationally chartered banks to determine whether they might agree to terms similar to those in the proposed deal, the person said.
State and federal officials are nearing a settlement with the five largest mortgage servicers - Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc- to resolve allegations of misconduct in processing foreclosures and other issues.
In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the banks will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans.
In recent weeks Justice officials have approached several other banks about joining the settlement, a move that could potentially push up the total price tag.
Kraft's Split Story Continues In 2012 [View article]
GLOBAL SNACKS BUSINESS
Irene Rosenfeld, Kraft Foods' Chairman and Chief Executive Officer, who will be Chairman and Chief Executive Officer of the global snacks company, announced the designated executive leadership team for the global snacks company:
DAVID BREARTON will continue as EVP and CFO, responsible for financial operations, including accounting and reporting, financial planning and analysis, treasury, tax, audit and investor relations. He will assume responsibility for Information Systems.
MARK CLOUSE will be EVP and President, North America, responsible for the company's business in the United States and Canada. He currently serves as EVP and President, Snacks and Confectionery in Kraft Foods North America.
TIMOTHY COFER will continue as EVP and President, Europe.
SANJAY KHOSLA will continue as EVP and President, Developing Markets. In addition, he will provide oversight to the company's Chief Customer Officer.
KAREN MAY will continue as EVP, Human Resources.
DANIEL MYERS will be EVP, Integrated Supply Chain, responsible for procurement, manufacturing, engineering and customer service and logistics. He currently serves as EVP, Supply Chain of Kraft Foods Inc.
GERHARD PLEUHS will be EVP, Legal Affairs and General Counsel, responsible for the legal, corporate secretary and compliance functions. He currently serves as Senior Vice President ("SVP") and Deputy General Counsel, Business Units, Kraft Foods Inc.
JEAN SPENCE will continue as EVP, Research, Development and Quality, responsible for all product and packaging development, research, nutrition, quality, food safety and scientific affairs worldwide.
MARY BETH WEST will continue as EVP, Chief Category and Marketing Officer, responsible for the Global Category Teams for biscuits, chocolate, and gum and candy as well as the marketing services functions. She will assume responsibility for corporate affairs.
A search is underway for an EVP, Strategy, responsible for the global snacks company's corporate strategy and mergers and acquisitions.
NORTH AMERICAN GROCERY BUSINESS
W. Anthony Vernon, EVP and President, Kraft Foods North America, who will become Chief Executive Officer of the North American grocery company, announced the designated executive leadership team for the North American grocery company:
DINO BIANCO will be EVP and President, Canada, responsible for all grocery operations in that country. He is currently President, Kraft Foods Canada, which includes both snacks and grocery.
DEANIE ELSNER will be EVP and President, Beverages. She is currently President, Beverages.
MARC FIRESTONE will be EVP, Corporate and Legal Affairs and General Counsel, responsible for the corporate affairs, legal, corporate secretary and compliance functions. He currently serves in this role for Kraft Foods Inc.
MICHAEL HSU will be EVP and Chief Commercial Officer, responsible for U.S. sales, Foodservice, Puerto Rico and export markets, as well as the company's marketing services center of excellence. He currently serves as President, Sales and Customer Logistics for Kraft Foods North America.
DIANE JOHNSON MAY will be EVP, Human Resources. She is currently SVP, Human Resources for Kraft Foods North America.
TIMOTHY McLEVISH will be EVP and CFO, responsible for the company's financial operations. Tim had previously served as EVP and Chief Financial Officer for Kraft Foods Inc.
NICHOLAS MERIGGIOLI will be EVP and President, Oscar Mayer. He is currently President, Oscar Mayer.
MICHAEL OSANLOO will be EVP and President, Grocery. He is currently President, Grocery.
SAM ROVIT will be EVP, Strategy, responsible for corporate strategy, mergers and acquisitions, and Information Systems. He currently serves in this role for Kraft Foods Inc.
THOMAS SAMPSON will be EVP, Business Transformation, responsible for implementing structural and organizational changes designed to provide greater efficiency and effectiveness. He currently serves as SVP of Business Transformation for Kraft Foods North America.
GEORGE ZOGHBI will be EVP and President, Cheese and Dairy. He is currently President, Cheese and Dairy.
Two other positions will be part of the North American grocery company executive team.
EVP, Integrated Supply Chain, responsible for procurement, manufacturing, customer service and logistics.
EVP, Research and Development, Quality and Innovation, responsible for product and packaging development, research, nutrition, innovation, quality, food safety and scientific affairs.
4 Utilities With Bond-Like Income Characteristics [View article]
It jogged my memory about a insight I gleaned from some Buffett books: while stocks and bonds have different qualities (debt/equity; priority in dissolution; voting, etc.) from some stand points they are similar.
That is, an investor is--ideally- paying for some future stream of income with both. It comes in regular payments from bonds (or at the maturity) or in dividends from stocks (or the payment instead becomes retained earnings that get plowed back into the company increasing its value to allow tax free compounding, so you defer the payment for a later capital gain).
So I will check if these stocks are in my utility ETF--nice yields and reasonable payout ratios.
Kraft's Split Story Continues In 2012 [View article]
I can't think of many scenarios where the split of the company hurts shareholders. Some articles mention less leverage with major retailers (e.g., for getting the best terms and visibility in stores). Maybe there is some necessary duplication of administrative costs from having two of everything (headquarters, human resources depts, boards, etc).
There is always some risk of sibling rivalry-- that one company gets favored and is more likely to succeed and the other gets the leftovers.
The dividing lines look pretty logical and the companies will be different segments.
What gives me some comfort that both will be strong companies is that the current owners (Berkshire Hathaway, Nelson Peltz, CEO Rosenfeld with 845K!) will own shares in both companies. Unless they sell right away after the split, they'll have a major financial stake in seeing both firms succeed, as will all the small investors and institutional owners.
Maraming Salamat!
Kraft's Split Story Continues In 2012 [View article]
Gevalia was on the end cap, too. And so was Kraft Parmesan Cheese. So was Stovetop. So were Oreos. The Kraft items were everywhere you looked in fact (but then I was also attuned to look for their items). But KFT appears very visible in stores right now as we head into the split.
Similar story at Walmart.
Also, a new story out on debt/bond manuevers before the split.