I have no position in Kraft but heavilly weighted in MO since about $60.
My comments about Kraft management reflects shortcomings that I see and feel; and with no desire to talk it down for future gain. I certainly hope the company can turn it around, however my gut feel is that it needs a good house cleaning first with culture modification.
Reply to your post
<"MO has been actually running KFT, and not KFT management as so many here seem to think. KFT management is MO's puppets">
Kraft has set up all the guidlines, procedures, marketing, capital budgets and profits by which they are expected to operate. MO audits all of the Kraft guidelines for compliance, and then rates them on how they did on their own self imposed rules. The fact is, Kraft has been hard pressed show any excellence. If you think so, where is it???
<"Once KFT is finally spun-off, KFT management will be free to forge ahead.">
Kraft management is currently and has always been free to do "forge ahead" as they see fit. So look what's happened.
RODGER DEROMIDI took it upon himself to spend $2Billion for Tassimo worldwide. This is a new coffemaker (and coffee products) that sells for $169. How many have you bought or anyone reading this?? This is coffee that you can make in a regular coffee maker for 1/4th the price with some exceptions. I hope there are a lot more yuppies out there who want their latte only one way.
KRAFT HAS BEEN TOTALLY MUM on this and it bodes very poorly. So kiss your $2 billion good bye and hopefully along with Rodger and his whole gang.
Kraft can be turned around but Deromidi has to go and the process driven no nothing imbreds must go as well. Kraft is dead money for the forseable future so most people should move on until that time.
MO may not dump the shares but its employees probably will. Kraft management has FAILED to deliver shareholder value and everyone knows it!!!
"Analysts attributed the sell-off to Wall Street's belief that many Altria shareholders will dump Kraft shares that they receive in a spinoff, with the market lukewarm toward the packaged foods industry. Large food manufacturers have struggled recently amid high energy and commodity costs and competition with private-label goods."
As I stated earlier, Kraft does NOT have...
"KFT has "first right" option to buyback those shares directly at a fractional price prior to MO's "controlled sale" into the open market."
You heard it here first.
Nevermind what just happened mr billionaire! hohoho i got a secret and it doesn't have to do with ipaddresses monitoring hedgers who have complete access to information through ip addresses. Kraft will blast -off after spinoff! Any investor knows this is huge investment opportunity here!
On CNBC this morning I heard that KFT had been cleared to be "spun-off". I wanted to check the board to see if anyone else heard this and what they thought.
I've always been able to buy on dips below $30 and wait for it to come back up but it seems not to be behaving lately.
I can only guess that, with the MO victory announcement, it moves the breakup of Altria a little closer to reality. The market might be viewing this as a negative since there would be a large supply of KFT stock available with the demand for it an unknown at this point in time. Just a guess on my part.
I'm surprised at the way KFT looks on a 1 year chart myself, and admit I have been wrong many times in the past, however, I'd like to see KFT put in a bottom at this level so we can see some accumulation. JMO.
Lots of people own this stock and are upset by its performance. Therefore any spike is an excellent selling opportunity. I know a ton of people that blindly bought the IPO, if they were smart they'd sell and put into MO -
better dividend and much higher upside. $4 today and much more to go.
Covered calls are not a bad strategy. Since this goes neither up nor down, maybe sell some strangles month to month as well.