I agree with others that it may be better to hold off for a bit longer before buying. Although I have never done research into KHC so donât know much about the fundamentals.
Warren Buffettâs comments on overpaying were also interesting!
I agree with others that it may be better to hold off for a bit longer before buying. Although I have never done research into KHC so donât know much about the fundamentals.
Warren Buffettâs comments on overpaying were also interesting!
Do you have any numbers to back up your bottom of $25?
Iâve only recently added Kraft to my portfolio and based on my numbers and future projections, this loss will actually be ironed out completely through pound cost averaging even if the stock value remains as itâs current position. This is largely as it was a small % of the portfolio to begin with (smaller now!).
Your opinion is noted however
That would be hilarious, incredible to think that KHC tried to acquire Unilever only 2 years ago. Currently unileverâs Market cap is nearly 4x KHC, itâs amazing the difference a couple of years of bad results can make!
Totally agree, this is a great opportunity if people still think it has value. Just consider this 26% off the price you were about to pay for it. If thereâs a time to invest itâs now - but as Rollingskies sad itâs not going to instantly bounce back
So thinking about this a bit more, 2018 adjusted EPS was $3.53, if you compare that to the earnings of premier foods in the U.K. which has been in a real mire for a long time, a P/E ratio of 5-6 become not unfathomable. At least if stagnating revenues and declining earnings persist. That would place the stock at around $17.65-$21.20
At the moment the dividend probably protects against such a fall but how safe is that exactly? The balance sheet doesnât look strong, with around $38B in debt that comes in around 5.5xEBITDA. The interest is going to be crippling and further dividend cuts may take place in order to address this large debt pile.
Of course I could be wrong! Sales could pick up and earnings could increase which would lead to a much better outlook and valuation. However Iâm sceptical this is going to happen any time soon if indeed at all.
I just love this story Would make the day so much easier!