Kraft Heinz (KHC) đŸ„« - Share Chat

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 don’t know much about the fundamentals.

Warren Buffett’s comments on overpaying were also interesting!

Do you have any numbers to back up your bottom of $25?

I’ve 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 it’s current position. This is largely as it was a small % of the portfolio to begin with (smaller now!).

Your opinion is noted however :slight_smile:

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That would be hilarious, incredible to think that KHC tried to acquire Unilever only 2 years ago. Currently unilever’s Market cap is nearly 4x KHC, it’s 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 there’s a time to invest it’s now - but as Rollingskies sad it’s not going to instantly bounce back :rocket:

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 doesn’t 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 I’m sceptical this is going to happen any time soon if indeed at all.

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I just love this story :rofl: Would make the day so much easier!

Have you ever felt you can’t get enough sauce on your chips :fries:?

Bad news, they’re basically only being made for an advert.

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