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Mondelez (MDLZ) CEO Irene Rosenfeld tips off on CNBC that the company is more than likely to...

Mondelez (MDLZ) CEO Irene Rosenfeld tips off on CNBC that the company is more than likely to make acquisitions in developing nations. Her vision is taking the company's snacking platform from market to market, boosted by "tack-on" buys. The early analyst take on the Kraft spinoff is that Mondelez is the high-growth, risk-on trade while grocery player Kraft Foods Group (KRFT) looks like the stable dividend player.
Comments (12)
  • arw
    , contributor
    Comments (4) | Send Message
     
    Am disappointed that I was not notified by broker giving me a choice of what company I preferred to stay with.
    3 Oct 2012, 09:12 AM Reply Like
  • Seeker4
    , contributor
    Comments (94) | Send Message
     
    @arw: There isn't a choice to make. The spin off gives you one share of Mondelez for each three shares of Kraft that you held on the eligibility date: so you see you'll have ownership in both companies at 1 for 3.

     

    Long Kraft. Been long since the days of the spinoffs from Philip Morris of Altria and Kraft. PM has been very good to me. Still long.
    3 Oct 2012, 09:29 AM Reply Like
  • 106857
    , contributor
    Comments (2) | Send Message
     
    You really didn't need to be notified of which company you preferred to stay with as you will be receiving 1 share of Kraft Foods Group for every 3 shares of the prior Kraft companies shares. In the end, you will have retained all of your shares in Mondelez that you formerly had with Kraft and additionally, 1 share of the new Kraft Foods Group. I like this split and think it brings a great balance between excellent dividend potential from Kraft Foods Group and outstanding growth opportunity in Mondelez......Irene Rosenfeld is no dummy and her decision to split the company and remain CEO of Mondelez speaks volumes of her belief in the split.....
    3 Oct 2012, 09:38 AM Reply Like
  • 106857
    , contributor
    Comments (2) | Send Message
     
    I just double checked my info on the split and found that I was correct in saying that for every 1 share of Kraft Foods Inc. you held, you will recieve 1 share of Mondelez. For every 3 shares of Kraft Foods Inc. you held, you will recieve 1 share of Kraft Foods Group.
    3 Oct 2012, 09:57 AM Reply Like
  • willyAtoZ
    , contributor
    Comments (2) | Send Message
     
    Does anyone have any idea of the tax implications of this spinoff? Does my cost basis in KFT now become my cost basis in MDLZ? And what then is my cost basis in the new KRFT?
    3 Oct 2012, 11:16 AM Reply Like
  • TSWyso
    , contributor
    Comments (2) | Send Message
     
    I'm not too happy about this deal. It should have gone in reverse. If you keep both, you wind up losing two thirds of the dividendsy ou got from Kraft since Mondelez won't be paying and dividends and this company is the bulk of this split.
    3 Oct 2012, 01:00 PM Reply Like
  • joanwilms
    , contributor
    Comments (2) | Send Message
     
    In article "Why Kraft Looks Cheap Before It Recrafts Itself," It said that KRFT will pay $2.00 dividend and based on the when-issued price yields 4.4%. This is exact quote . Would some one explain exactly what this means? MDLZ is paying .29 dividend quarterly.
    3 Oct 2012, 05:59 PM Reply Like
  • Mike Tango
    , contributor
    Comments (41) | Send Message
     
    Joan wilms: MDLZ, in a parting gesture, paid the "old KFT" quarterly dividend (payable +/- 15 OCT 12) at $.29 per share. That will probably go down in the future as MDLZ will redirect its earned cash toward expansion, thus the identity: "growth stock". Read carefully the article reference KRFT's $2.00 dividend. I believe it said that the CEO would ASK the board of directors for a $2.00 dividend; that works out to be $.25 per share, per quarter, or about 4.4%. Good, not great, annual yield.
    TSWyso: I agree, it seems that this spin-off is a tad back-asswards. One would think that the "name sake" company (KFT) would have retained the larger number of shares with the spin-off company (MDLZ) taking the smaller position. BUT, when you think about the separation of assets, liabilities, etc., then it makes a bit more sense. I think of it as the "Devinci Code"; it's just all written using a mirror.
    5 Oct 2012, 04:18 AM Reply Like
  • arw
    , contributor
    Comments (4) | Send Message
     
    Talk about confusion, before this spin off I had 700 shares of kft with a gain of 8K. I now show a $ 1800.00 loss with mdlzv
    5 Oct 2012, 10:50 AM Reply Like
  • Mike Tango
    , contributor
    Comments (41) | Send Message
     
    ARW: Some time in the next 48 hours you should see 233 (+/-) shares of KRFT in your account. Multiply that # by the market closing price (probably Monday's) of KRFT. That $ total, plus your MDLZ value, equals your total value. Subtract that # from your "cash in" (what you paid for KRFT) and that will tell you how much you are ahead. I asked by "broker" today and he said they will start posting my shares to my account tonight. I'll KNOW what my total value is by Monday morning. (If your spin-off shares are less than 1, then you'll get cash for your fractional share.)
    5 Oct 2012, 06:33 PM Reply Like
  • arw
    , contributor
    Comments (4) | Send Message
     
    Mike Tango. Thank you for the info. Very helpful. ARW
    6 Oct 2012, 09:52 AM Reply Like
  • jrepasch
    , contributor
    Comments (775) | Send Message
     
    Mike T,

     

    Thanks for the answer above re KRFT's value. I've been confused too.

     

    joni
    5 Oct 2012, 06:51 PM Reply Like
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