najdorf

Kraft Foods: Time to Put This Cash Cow Out to Pasture?

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.