Stiritz up to old tricks at Post


Bill Stiritz is getting a lot of press for his involvement in Herbalife, but Mario Gabelli - in the Barron's Roundtable - reminds that Stiritz is in the same league as John Malone and Warren Buffett when it comes to adding value, and as CEO of Post Holdings (POST) he's employing the same strategies which so enriched the shareholders of Ralston Purina.

Stiritz has spent $1.4B on accretive acquisitions and Post has a 10.2% market share in cereal and a foothold in organic and natural foods - a segment set to grow exponentially.

Pro forma revenue could be more than $2B in the year ending September 2015, says Gabelli (it was about $1B in the year ended Sept. 13), and EBITDA could roughly quadruple in three years thanks to organic growth and synergies.

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Comments (4)
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    Mario is usually right and I think he is right on in this call
    1 Feb 2014, 09:03 AM Reply Like
  • june1234
    , contributor
    Comments (4412) | Send Message
     
    Mario is right. Its not complicated with 15% of the working pop underemployed, lowest labor participation rate in yrs, 350K new unemployment claims each week thats a big recruiting audience for HLF, new distributors being the principal product for any MLM
    1 Feb 2014, 10:19 AM Reply Like
  • freedorm
    , contributor
    Comments (8) | Send Message
     
    Yep, Mario know that unemployed population = exponential growth in cereal.
    2 Feb 2014, 12:37 PM Reply Like
  • pat45
    , contributor
    Comments (462) | Send Message
     
    Yes when people are disparate will sell MLM; but I lost money and expect most new people selling product to do same...although that was many years ago
    2 Feb 2014, 07:04 PM Reply Like
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