Kellogg Company (K)

Testing out a portfolio of stocks rated outperform that are characterized by having one letter ticker symbols.

A grain/commodities pullback would be good for any cereal maker. That's my basis for choosing kelloggs. It could be a good hedge for anyone with MOS, CF, MON, POT, etc. in the same portfolio (like me, still), which maybe should be taken out or shorted--if the dollar would stabilize. Anyone think the Paulson/Bernanke plan announced today could finally reverse the trend?

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.

Due to the increasing market volatility in th commodities market in regards to grains, Kellogg will find it difficult to maintain profitability in the short term.

Without losing its long-time base in such products as Corn Flakes, Kellogg is poised to engage more health-conscious consumers with whole grain and vegetarian products, including the Morningstar Farms line. With roots firmly planted in a proud past, this company continues to march forward. Even in a slow economy, people must eat.

steadily increasing dividend defensive consumer staple stock, with my bet that increasing pinch will swing the pendulum to less dining out.

OUT PERFORMING S&P AVG BY 2/1. MUST BUY & HOLD NOW!!!!

Old company going green good choice

The best to you each morning

Full Time Employees: 26,494

BUSINESS SUMMARY
Kellogg Company, together with its subsidiaries, engages in the manufacture and marketing of ready-to-eat cereal and convenience foods. Its principal products include ready-to-eat cereals and convenience foods, such as cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles, and veggie foods. The company sells its cereal products under the Kellogg's brand name principally to the grocery trade. It also markets cookies, crackers, and other convenience foods under Kellogg's, Keebler, Cheez-It, Murray, Austin, and Famous Amos brands to supermarkets in the United States through direct store-door delivery system and other distribution methods. The company sells its products in North America, Europe, Latin America, and Asia Pacific. Kellogg Company was founded in 1906 and is headquartered in Battle Creek, Michigan.

It's that time again -- time to get defensive. K has traded down to the lower extent of its channel, hitting near the low of its historical PE range. It's a good, solid company, and distressed investors recognize its value as a defensive stock as they eat their Corn Flakes before the market opens every morning.

Over 50% return on equity, good sales growth, repurchase record, profit margins....

Not to mention just the economics of name brand cereals are fantastic. This is a very good price too, I'd be willing to pay more.

Gotta be bullish.

kellog is a great stock that over time will easily out class S&P because no matter what people will eat cereal

I am a long on K but I plan to switch to underperform sometime in 2009 assuming a depression does not hit. It held up well going down but will not rise as fast as others going up.

Long term play.

People can't afford to eat out so they will buy more foods that are quick to eat at home.

GOOD EATS

1/27/09 Pitch: Upthumb. Earnings 2/5/09, 9:30 AM. Analysts are negative. But I'm positive because commodity prices have plunged, including the fuel it takes to bring these products to market. And store prices have not decreased. Margins should be up and profits are likely to beat estimates.

Kellogg's responds to increased costs by shrinking the amount of product you get, while maintaining the same sized box, and no one seems to notice, so they keep on buying.
Kellogg's also owns Kashi, which it has expanded into oatmeal, frozen meals, frozen pizza, crackers, and snack bars. Kashi is growing rapidly, and I don't see that stopping.
Their core brand is strong, they have responded to the rise in price of commodities, and they own powerful other brands...thumbs up.