Post Holdings on sale


Market sell-offs make for a great time to pull out one's wish list for stocks and check for bargain prices. Post Holdings (POST) - run by master capital allocator Bill Stiritz - about doubled since being spun off from Ralcorp about two years ago, but is down 15% over the last month.

It's not all about the broad equity slump - a stock offering and a cut in 2014 guidance have also taken a toll on the shares. Still, the capital raise gives plenty of deal-making ammo to someone who's proven he knows what to do with it. "The market opportunity for Post is large," writes Barron's David Englander, noting the highly fragmented active-nutrition and private-label foods industries, and that Stiritz has already stepped up acquisitions in these areas.

Seventy-nine years old, Stiritz isn't getting any younger, but Englander reminds many on the Post bench and board have a long history of working with the CEO and rewarding shareholders, and - as Warren Buffett has shown - isn't 80 the new 70?

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Comments (1)
  • Deja Vu
    , contributor
    Comments (1800) | Send Message
     
    "Still, the capital raise gives plenty of deal-making ammo to someone who's proven he knows what to do with it. "

     

    What does Stiritz want to do with his ammo - let me guess...hmmmm... perhaps become a pyramid scheme operator? A good name takes a lifetime to acquire and a day to lose.
    12 Apr 2014, 11:48 AM Reply Like
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