Heinz after it went private was loaded with debt. Debt payment in 2014 was $685M while net income dropped to $673M from $985 in 2011. This means Heinz is being valued at 30x earnings when used as currency to buy your stock.
Heinz stock is being used for currency at approximately 30x earnings.....Heinz debt service costs exceed net income. Heinz stock is technically junk.
PPC has been one on worst performers in last six weeks- (30%). PPC's cliff divet began as soon as it paid the $5.50/share special dividend on Feb 17. PPC was $38 on Feb 16 and is now $22.50.....PPC is 75% owned by Brazilian food giant JBS SA which means $1.1B was paid to JBS as a special dividend. On March 5 PPC issued $500M in notes. A possibility is JBS is planning on using this $1.6 in cash to buy the 25% of PPC it doesn't own. At $30/sh this would cost $2B......A smart move for JBS would be to roll the whole company into PPC and use PPC's NYSE listing to get broader liquidity for JBS...If this doesn't happen I'd be more than suspicious about the Special div JBS effectively paid itself...the special div could be interpreted as the type of financial games Petrobras played.
the problem I see is their order backlog has shrunk while dealer inventory has risen. WGO needs to cut back production and shrink its dealer inventory. As it works down this inventory by reducing factory hours the order backlog will build back up. Should take about 6 months to balance orders and inventory.
supply growth yr/ye still outpassing demand growth. lower prices increasing demand, but tide is not at bottom. Stay away. Yesterday was suckers rally.
Intel maybe on the inside of Pcs, but it's not in phones and wireless. Mu would provide a way for intel to get into other markets while strengthening its presence in legacy products. Mu value above $40 in stock swap merger. 1 share of INTC plus cash