Use access key #2 to skip to page content.
$31.51 -0.57 (-1.78%)
8/29/2008 4:01 PM

Kraft Foods, Inc. (KFT)

CAPS Rating:
****

The Company, through its subsidiaries, is engaged in the manufacture and sale of branded foods and beverages in the United States, Canada, Europe, Latin America, Asia Pacific, the Middle East and Africa.

View All Commentary (KFT)

Recs

8

Avatar Gtrinvestor (99.99) Submitted: 2/15/08 9:41 AM : Outperform Start Price: $29.61 KFT Score: 10.63

Defensive stock that is the same price as it was 2 years ago (and 5 years ago for that matter). Clearly management needs to make some improvements here, but the stock only has a forward PE of 14, which is not tremendously high for a defensive food company like Kraft.


They also pay a nice 3.7% dividend, which ain't too shabby.


And to top it all off, Buffett just bought a huge chunk of this company, so your hitching your train to a pretty decent investor as well.


2 thumbs up out of 3, due to recent history of flat sales growth and probable increased input costs, which could hurt profitable growth.

Report this Post Replies: 2 | Reply

Avatar TDRH (100.00) Submitted: 2/15/08 8:38 PM

Recs: 0 | Rec This

Do you think that Buffet ever announced his holdings when he wants to focus people's attn on a stock or segment and was thinking of getting out-or just wanted the market to follow his lead? Imagine what a professional pump and dumper could do with his street cred.

The more I read about the future of energy, the more I believe that more coal powered electricity plants will need to be developed. Buffet's move into Rail ties into that very well.

Not trying to undermine the man, just wondering out loud.

Report this Post Reply

Avatar Gtrinvestor (99.99) Submitted: 2/21/08 12:26 PM

Recs: 0 | Rec This

The problem for Buffett is that he is required to announce his investment if they are greater than a certain % of a company's stock (I believe it is 5%, so the 8% he acquired he was definitely required). The other investments he makes are public due to requirements on investment companies to disclose holdings of a certain size.
I have actually watched interviews with him where he detests having to disclose his holdings publicly, b/c it makes it difficult for hime to get in and out of a stock stealthily (is that a word?). I believe he said that, if he could invest smaller amounts anonymously, he could make 40% returns on his investment annually (which makes me feel a little inept as an investor).
All that being said, I'm sure he plays some games w/ invstments, but since he doesn't go into or out of his investments that quickly (like we do in CAPS), then the little bumps in stock price don't help too much.
As for his investments in railroads, what a great idea he has had. Take an industry that everyone has completely ignored for years and show why it is so great to all of us again. For me personally, most of my investments are either going into energy (like the deepwater oil drillers), medical (generic drug companies like CPD) and overseas. US companies can still be good, but it is just harder to pick the good ones over here, b/c the upside is not as big unless they have int'l exposure.

Report this Post Reply

Featured Broker Partners