So I think it's now fair to say that an activist investor or a 3G pays a visit to Minneapolis in the coming weeks
By now folks should realize that General Mills has gone way past the point of no return. There is no hope for this company. I have said it before and I will say it again; the management team that got General Mills into this mess is still largely in place. This team is both unwilling and unable to do what needs to be done to save the company and its brands. It doesn’t matter if an activist investor comes along or a buyer with a reasonable offer, management will do as they have always done and fight tooth and nail for the status quo that has fattened their wallets at the expense of the shareholder. So the only thing to do is to sell. Get out while you can. There are so many better run businesses with a future that will do better for you.
In addition to 3G= would GIS be a good fit for KO or PEP?
Here is a trader fact, the people that bought GIS at 60 and higher are the same ones selling here. I love this game, taking money from those loosers.
3Q earnings tomorrow. Have a good ride!
I don't think people will ever fully adopt to buying groceries online for one simple fact, people want to see what they eat before they eat it! Spoiled meat and wilted lettuce in a box delivered to your home--what will you then do with it-take time and effort to boxed it back up and send in for a refund! Amazon is toast the those thinking they will take over the grocery business are dead wrong for most Americans.
It is only time until $GIS gets bought out. Thinking probably happens by $KHC or Nestle. Bolt on acquisitions are great but they do not do anything to cut costs or to give a company enough size to have negotiating power. With grocers trying to cut costs food companies will need size in order to have power to fight back. Buffet recently stated that $KHC isn't interested in a candy maker so that leaves staples like $GIS. $GIS actually would complement $KHC very well and allow to cut a lot of costs.
Retail grocery is very competitive. Amazon will not make money at retail and when they try to either vertically integrate or exert too much pricing pressure on manufacturer's, antitrust will prevent it. Amazon fears are way overblown. When investors finally demand profits for Amazon, its shares will fall like a rock--like it did in the 1990's when it went to $2 share! Manufactures have done well with Walmart and Target selling groceries and Amazon is no different!
As GIS trades in the high $50’s a share and Kraft trades near $85 a share we are nearing a critical inflection point whereby Kraft could buy GIS. If Kraft goes $5 a share lower (below $80) and GIS edges up $5 a share higher (over $60) then the less than $20 a share in price difference would allow Kraft to offer GIS shareowners one Kraft share for every share of GIS. Depending on how the deal is structured, Warren Buffett and 3G would have to sink about an incremental $12 to $24 billion into Kraft to make existing Kraft shareholders whole. GIS shareholders get a nice tax free capital gain and a bigger dividend. How likely is this scenario? Well, Kraft’s share price is likely to decline given underwhelming earnings and lofty p/e ratio of over 27. GIS has a harder road for the share price to appreciate further by another +10%. GIS Q1 earnings will have to come in well above expectations, including a return to topline growth. Let’s hope that the current GIS management is not too ignorant and arrogant to accept a reasonable offer. But even if they do reject a reasonable offer, an activist investor and the mother of all of all class action lawsuits by shareholders against GIS management, to oust them once and for all, could do the trick. Look for a deal just after GIS announces Q2 earnings.
moving right up the Valueline DIV Portfolio 5 out of 20
https://seekingalpha.com/article/4095589-general-mills-dividend-zombie-richard-bergers-idea-month? See below. Again the emphasis on historical results glosses over the inability of the company's management to deal with current challenges. First it was the anti white carb movement. Then it was the yogurt debacle. Now it is e-commerce, which has devastated traditional bricks and mortar retail and has its sight set on grocery. The dividend is safe, until it isn't. Nothing lasts forever.
General Mills, Dividend Zombie - Richard Berger's Idea Of The Month
We have extended our partnership with Cheddar TV to produce a Seeking Alpha 'Idea of the Month' segment. SA Marketplace author Richard Berger continues the seri
OUI priced at $1.29, retail $1.59 at local discounter market. Checkout woman, really checked jar out, wondering what it was while person ahead fumble with chip payment. Had to explain that it is classic French style. Yogplait was on sale too, in the boxes or single unit at 49 cents. Have not tried, bought 4 flavors. Here is to the savior of the yogurt segment !!
All HAIL OUI !!!
on Valueline div portfolio i just dont see enough to pull the buy button.
At this point, the only reason to buy GIS is in hopes that it gets taken out at a higher price, sometime in the near future. Let's face it. General Mills management is at best mediocre. They have for decades touted themselves as master marketers, knowing the inner workings of the consumers heart and mind. But as it turns out, that is just one big self aggrandizing lie. Management built the myth. Shareholders bought it, but it hasn't been true for over twenty years. Looking back, they kind of blew the Pillsbury acquisition of 2001. Then more recently they really blew the Yoplait acquisition. Organic growth is almost non-existent. Tinkering with cost cutting, ain't gonna cut it. Nothin less then the colossal management shake up that accompanies being acquired will save any of the General Mills brands. The chief concern for those stuck with GIS right now is that management is too self absorbed and arrogant to consider any reasonable offer and would rather go down with the ship, taking brand equity and shareholder value with them.
If we are to go off the RSI then you could argue that a pull back next day or so could occur on GIS before rallying up. if you guys have questions you should ask awe.SOME-StockS. They often respond to my emails which is helpful.
Who thinks GIS will get bought out?
Stock is boring, but worth a buy here for 20 year buy
In at 55.3. giddyup.
Year over year profits increases, profit margins expanding, cost cutting, new products, great cash flow and dividend with just a small sales decrease over the past few quarters--business schools say buy stocks with increasing gross margins! GIS is cheap but fake news keeps hitting the press and always the same type of story--were dealing with power people that want to buy the stock lower!