wellesenterprises
Practically no upside, but big downside if the deal falls through – strong sell
Last year on 14 August 2024, it was announced that Kellanova (NYSE:K) will be acquired by privately held and family-owned Mars Inc. The
Kellanova: A Cereal Thriller With No Crunchy Upside
Summary
- Kellanova's upside is capped at 4.5% if the Mars deal closes, but downside risk is 25% if it fails.
- The European Commission's antitrust review is the last hurdle, with a decision deadline of October 31, 2025.
- If the deal falls through, Kellanova could drop to pre-rumor levels below $60, given weak Q1 results and no catalysts.
- The risk/reward is unattractive—book profits now; strong sell recommendation due to limited upside and significant downside.
Always on the hunt for undervalued, promising stocks with a focus on risk and reward. Limited risks and decent to high upside by knowing what one's owning. I strongly believe that the best investment ideas are often the simplest. If contrarian, the better.
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