Kellogg Company (K)

sleepyseth (98.29) Submitted: 11/03/06 3:08 AM : Start Price: $47.89 K Score: 12.10

Kellog's is a great company at managing the street, similar to Colgate-Palmolive. They can manage to have an extremely slow quarter, poor by most companies standars, but still please the street. K often beats numbers, which has often is set at an unreasonably easy number. The forecasts had gotten to the point where they had started to drift so low that we are now seeing the analysts raising guidence following the company's statements. These raised numbers still won't be so fast, but will be better than what was expected and should give this stock a near term pop of 15% or so by the next quarter. I would get out after it runs up and wait for it to pull back again. It is a soldid company with good fundamentals and the near term is improving, but it does not deserve a huge P/E and will drop back to where it should be after this little run plays out.

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