31.10 -0.01 (-0.03%)
After hours: 7:26PM EDT
|Bid||31.07 x 1000|
|Ask||31.10 x 3000|
|Day's Range||31.03 - 31.71|
|52 Week Range||31.03 - 64.99|
|Beta (3Y Monthly)||0.82|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||1.60 (4.90%)|
|1y Target Est||N/A|
According to GuruFocus' list of 52-week lows, these Guru stocks have reached their 52-week lows. The price of 3M Co. (MMM) shares has declined to close to the 52-week low of $166.25, which is 24.5% off the 52-week high of $219.75. The company has a market cap of $95.83 billion.
FT premium subscribers can click here to receive Due Diligence every day by email. One thing to start: DD has teamed up with Murad Ahmed, sports correspondent, to launch the FT Business of Football summit. The inaugural event is today at Claridge’s in London.
Warren Buffett is a fan of dividends. Just look at all the dividend stocks that fill Berkshire Hathaway's (NYSE:BRK.B),NYSE:BRK.A) portfolio. Many of his top holdings send plenty of cash flowing back into BRK.B's coffers, inflating them by billions of dollars each quarter. And for decades, BRK.B has been using those dollars to reinvest and drive the future returns of Berkshire Hathaway stock.Source: Shutterstock However, despite Buffett's love of stocks that pay dividends, Berkshire Hathaway stock doesn't pay one of its own, with Buffett preferring to use the money for other purposes. Over the years, that's been a fine approach. But these days, Buffett and BRK.B may want to rethink that stance. * 7 High-Yield REITs to Buy (Even When the Market Tanks) A huge cash pile, underperformance in recent years by Berkshire Hathaway stock and a lack of appealing elephant-sized takeover targets make the idea of paying a dividend- even a one-time special one- worthwhile for Berkshire Hathaway.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Growing Problem for Berkshire HathawayCalling BRK.B a cash-generating machine would be an understatement. By design, the organization is set up to produce copious amounts of cash flows from its underlying holdings. Its insurance companies pull in billions from their investments, while Buffett receives billions each quarter in dividends from BRK.B's massive stakes in companies like Coca-Cola (NYSE:KO) and U.S. Bancorp (NYSE:USB). And we can't forget about the dividends/distributions that Berkshire Hathaway's subsidiaries send back to their parent.Historically, Buffett has used this cash primarily to invest in its current businesses, buy new businesses and repurchase Berkshire Hatahaway stock when its shares are cheap enough.The problem is that BRK.B may be producing too much cash these days. At the end of 2018, BRK.B had about $112 billion in cash and equivalents on its balance sheet. That balance has only grown as more of its positions have paid their quarterly dividends into the firm's coffers.The issue is that Buffett and Berkshire are having trouble finding ways to spend that cash.With stocks surging over the last year or so, valuations aren't as cheap as Buffett would like. After all, he is a value investor. As a result, it's difficult for Berkshire to buy more shares of companies in which it already has stakes .Meanwhile, expensive valuations make buying companies outright an expensive proposition. Since Berkshire Hathaway is so big, it takes a large deal to really move the needle for Berkshire Hatahawau stock. Unfortunately, Buffett and the team at Berkshire Hathaway recently haven't found any major company that they like. It's been more than three years since BRK.B carried out a substantial buyout. So, its cash keeps piling up.That could explain Buffett's recent bout of underperformance.Over the long haul, Berkshire Hathaway stock has been a great investment. Since Buffett took over, Berkshire Hathaway has managed to produce a compound annual gain of 21% , versus a compound annual gain of just 9.7% for the S&P 500 during that time.However, the last decade hasn't been so kind for Buffett. BRK.B stock has risen by 259% over the last ten years. That's not bad at all. However, the S&P has returned a total of 314% during that time. This year alone ,the S&P 500 has risen more than twice as rapidly as Berkshire Hatahaway stock. Berkshire Hathaway Should Give It All AwayThere is a relatively easy solution to the problem for Berkshire: enact a dividend of its own. Buffett has notoriously been stubborn on this issue and has said that in 10 or 20 years, the company may decide to institute a dividend. BRK has only paid a dividend once, back in 1967. However, it might be a good idea for for Berkshire Hathaway stock to start paying one.For one thing, Buffett's argument that it's better to use the money for investments is only valid if he actually puts the cash to work. Handing some of the cash back to investors as a dividend would certainly remove some of the drag on the performance. of Berkshire Hathaway stock.And Buffett wouldn't have to get rid of all of the cash. If Berkshire Hathaway last year- after kicking out the issues with Kraft Heinz (NYSE:KHC) - put 42% of its profits into dividends, it would have spent about $20 billion on the payouts. In that scenario, Buffett would still have had plenty of cash to play with. In fact, about five years ago, Buffett had only about $42 billion in cash on Berkshire's balance sheet, and he was perfectly content and performed better.By paying a dividend, BRK.B would remove one of Buffett's main complaints about Berkshire Hathaway as well. That is, that Berkshire Hathaway stock constantly trades at a huge discount to book value. If Buffett was to pay an annual dividend or even a one-time large special payout and remove some of the excess cash, the owners of Berkshire Hathaway stock would receive an improved return on their investment. Most likely, they would enjoy higher share prices and higher net asset value. Here's Hoping Berkshire Hathaway Starts Paying UpBuffett is an amazing investor and has steered Berkshire Hathaway towards enviable returns that may have been too good. BRK just throws off too much cash these days. It's a great problem to have, but it is starting to significantly hinder the performance of BRK.B stock. Initiating a one-time, special dividend or annual payout would go a long way towards removing that excess cash from Berkshire's balance sheet, while improving the performance of BRK.B stock. At the time of writing, author Aaron Levitt did not hold a position in any of the stocks mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Berkshire Hathaway Stock Should Pay a Special Dividend appeared first on InvestorPlace.
Global merger and acquisition volumes reached their third-highest year on record in 2018, continuing a trend that has seen dealmaking steadily increase since the financial crisis. All this M&A means that there are huge amounts of goodwill sitting on companies’ balance sheets — which bring the potential of similarly large impairments with them. With interest rates still at historically low levels and the global economy growing strongly in recent years, investors have largely been content to assume that firms have paid fair prices for the acquisitions they have made.
Loomis, CA, based Investment company RWWM, Inc. buys The Kraft Heinz Co during the 3-months ended 2019Q1, according to the most recent filings of the investment company, RWWM, Inc..
Berkshire’s Occidental deal was great for Berkshire, not so great for Occidental. But they both seem happy enough, so -- good for them?
General Electric Co shareholders offered their latest endorsement of new Chief Executive Larry Culp this week when they approved a 2018 pay package worth $15 million (£11.51 million). Earnings on April 30 showed the Boston-based company still had a way to go in its turnaround efforts, but Culp's plan to reduce the company's $110 billion debt load has nevertheless spurred interest from bondholders. The rise in bond prices is "definitely a recognition of the fact (Culp) does have a plan and that maybe things have bottomed out for GE," said Mark Jackson, portfolio manager at Diamond Hill Capital.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Kraft Heinz Foods Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
By Francesca Landini MILAN (Reuters) - U.S. packaged food giant Kraft Heinz has launched the sale of its baby food brand Plasmon with preliminary bids due by the end of next week, two sources close to ...
U.S. packaged food giant Kraft Heinz has launched the sale of its baby food brand Plasmon with preliminary bids due by the end of next week, two sources close to the matter said. Private equity firms and food groups are looking at the business, both sources said, adding it could be worth about 700 million euros ($783 million). Another source said PAI Partners was among investors expected to present a preliminary bid, adding that rival private equity firm Cinven could also be interested.
Berkshire said in its first-quarter report on Saturday it had invested $340 million in various tax equity investment funds from 2015 to 2018, before learning that federal authorities had alleged "fraudulent income conduct" by the funds' sponsor. "We now believe that it is more likely than not that the income tax benefits that we recognised are not valid," and took the charge for "uncertain tax positions" related to its investments, Berkshire said. Buffett's assistant Debbie Bosanek confirmed that the charge related to DC Solar.
One of Warren Buffett's most admirable traits was on display this past weekend at the Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) annual meeting in Omaha. Loyal as they come, Buffett and his sidekick, Charlie Munger, continued to support Wells Fargo (NYSE:WFC) stock despite the ongoing lousy press that plagues the bank.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsBuffett's support is excellent news if you own WFC stock, but terrible news if you own stock in Berkshire Hathaway, whose position in WFC stock is its third-largest equity holding. While Buffett's advice is broadly useful, it's becoming questionable how useful it may be about some of BRK.B stock's specific holdings when they're in hot water. The Ongoing Scandal for WFC StockWFC recently stated that the combined legal losses from several of its scandals -- including creating as many as 2 million fake bank accounts -- could be as high as $3.1 billion, 41% higher than its estimate in September. The bank is currently recruiting a new CEO to replace Tim Sloan, who resigned suddenly in March after taking over from former CEO John Stumpf, who himself resigned in October 2016 after leading WFC down a scandalous path of deceit and deception. * 10 Great Stocks to Buy on Dips In the two-and-a-half years since the fake-account scandal first surfaced, Warren Buffett and Charlie Munger have been very supportive of both Wells Fargo and WFC stock. "It's a great bank that made a terrible mistake," Buffett told CNN's Poppy Harlow in an interview in November 2016. "It was a dumb incentive system, which when they found out it was dumb, they didn't do anything about it."Buffett, of course, is referring to the fake accounts and the company's ridiculous goal (set by Stumpf) of selling eight Wells Fargo products per household that banked with WFC.This past weekend, Buffett didn't steer too far from his 2016 comments about the bank."It looks to me like Wells made some big mistakes in what they incentivized," Buffett said. "I've seen that [at] a lot of places. That clearly existed at Wells. To the extent that they set up fake accounts, a couple of million of them that had no balance in them, that could not possibly have been profitable to Wells."Munger said nobody should go to jail for honest errors of judgment and added that he wished Tim Sloan was still in the top job. Buffett's Fine LineBuffett is walking a fine line between protecting the interests of Berkshire Hathaway shareholders (he is the largest owner of Berkshire stock) and the interests of the American people. If he says damning things about Wells Fargo, the WFC stock price will tank and he, along with the rest of his shareholders, would lose money, due to BRK.B's large bet on WFC stock. Yet if he continues to play the role of a hypocrite, defending the practices of a rogue bank stock he happens to own, while discussing other problems that the U.S. faces, investors and others are eventually going to tire of listening to this icon of investing. And that would be a shame. However, it's not the first time that Buffett's said one thing and done another. Consider his investment in Kraft Heinz (NASDAQ:KHC). At the company's annual meeting this weekend, Buffett was highly critical of private equity firms."We have seen a number of proposals from private equity funds where the returns are really not calculated in a manner that I would regard as honest," Buffett said. "If I were running a pension fund, I would be very careful about what was being offered to me."He went on to state that he wasn't going to add debt to Berkshire Hathaway to juice its internal rate of return. It's an observation that would be righteous if it weren't for the fact that Buffett's in bed with private equity firm 3G Capital. Not only did he invest a whole bunch of money in Kraft Heinz, but he also got involved with Burger King's merger with Tim Hortons in 2014, which formed Restaurant Brands International (NYSE:QSR). Care to guess how much debt those two companies have?QSR had $11.8 billion in long-term debt at the end of March, equaling 70% of its market cap. Kraft Heinz had $30.9 billion in long-term debt at the end of December, representing 78% of its market cap.So, it seems like he is suggesting to investors, "do as I say, not as I do." The Bottom Line on WFC StockWhen Warren Buffett's gone from this planet, he will be missed, most notably by those who were made very rich by his business acumen. However,investors will look back on his pledge of allegiance to Wells Fargo and wonder why he remained loyal to that particular bank when there were so many other better ones.Buffett's calming words this weekend will continue to do wonders for WFC stock. As for Berkshire Hathaway, it's merely another reason to ponder whether it's lost its touch.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Great Stocks to Buy on Dips * 6 Growth Stocks to Buy for the Rest of 2019 * 4 Mega-Cap Stocks to Sell Before They Melt Down Compare Brokers The post Warren Buffettas Support for Wells Fargo Stock Isn't Smart appeared first on InvestorPlace.
With Mother’s Day fast approaching on May 12, Maxwell House coffee has opted to celebrate mom’s big day with a new ad campaign that somewhat awkwardly aims to draw attention to all the “invisible labor” mothers do every day, but that too often gets overlooked in the frenzied business of people living their day-to-day lives. Maxwell House is one of a number of iconic brands in the portfolio of Kraft Heinz, a packaged foods behemoth whose various problems have been thrust front and center in recent months. Among other things, KH took a whopping $15 billion writedown in February on two of its most iconic brands, Heinz ketchup and Oscar Mayer.
Kraft Heinz said in a filing Monday it will restate its financial statements for 2016 and 2017 by $181 million, after employee misconduct sparked a review into its procurement. As result of the investigation, roughly a dozen employees were reprimanded, people familiar with the matter said. The company says that the investigation has been "substantially resolved," and that no senior executives were implicated.
On Monday, Kraft Heinz (NASDAQ:KHC) announced that it would have to restate full-year and quarterly results after some of its employees fabricated a number of procurement transactions. The affected results date back to 2016, meaning the firm has more than two years of misleading financial data to answer for. The news hurt Kraft stock, but most of investors' disappointment was already priced in because the company disclosed the issue back in February.Source: Mike Mozart via FlickrKHC was trading at $32.77 per share on Tuesday morning, a 25% drop from this year's high above $48. Further to FallThe big question here is whether this misinformation is a buying opportunity. The fact that the firm has to restate means that its first-quarter results will be delayed this year, which could be putting off another blow to the firm's share price. The firm broke the news about its accounting issues during its Q4 results, which were lackluster and included a $12.6 billion loss due to a $15.4 billion write-down on its Kraft and Oscar Mayer brands. Plus, Kraft stock cut its dividend by 36% in order to create a little more financial wiggle room … a worrying sign for the future. InvestorPlace - Stock Market News, Stock Advice & Trading TipsGuidance for the first quarter was also poor, with management cautioning that organic sales were likely to decline due to the timing of Easter this year. That means when Kraft does finally come out with its first-quarter results, investors are likely to be disappointed and the KHC stock could take another hit. Value PlayContrarian investors are likely eyeing up Kraft stock as a potential value play and they could be onto something. If the misstatements are as minimal as Kraft management says they are, the worst may be over for KHC stock. The most recent disclosure suggests that the restatement will come in at around $208 million, a figure that management says won't be "quantitatively material." If that guidance is correct, it would translate into a less than 1% change to earnings-per-share over the past three years. * 10 Vice Stocks to Spice Up Your Portfolio The bottom line on the Kraft misstatements is that they don't look to be significantly damaging to the firm's financials at this point, so the worst from that angle is likely over. GrowthThe real issue for Kraft stock has been growth. The company's pricing power has diminished over the past few years as consumers look to price rather than brand when it comes to meat and cheese purchases. That has hurt KHC's finances because that category makes up about a third of the firm's overall revenue.Its packaged foods arm has also been hurt by shifting consumer preferences as most opt for healthier, fresh options. In order to counter the softer demand, Kraft has been cutting prices, which has helped keep sales growth positive. However, that has weighed on margins significantly. KHC also has a debt problem. The firm has been working to pay down its long-term debt, but acquisitions and stalling earnings growth have made that a difficult endeavor. Last quarter we saw long-term debt rise by 9%. How Risky Is KHC?Right now, Kraft looks like a very risky play. While the misstatement issues appear to be minimal, the firm has several other headwinds hurting its growth potential. It's worth noting that long-time Kraft supporter Warren Buffet is keeping the faith when it comes to KHC stock -- he told CNBC that despite the financial reporting issues, he hasn't lost confidence in the firm. * 7 Strong Buy Stocks That Tick All the Boxes What does that mean for investors considering KHC as a value play? It's a risky bet, but it could pay off. The huge drop that Kraft stock suffered back in February was due in large part to the news that the firm's financial reports may not be correct; however, now that the damage has been assessed, it looks like the worst is over. Of course, the firm will still have to wrestle with the headwinds that were weighing on the stock before the accounting issues were disclosed -- and that's the risk value investors would be taking by snapping up KHC now. However, at just $32 per share and a 4.88% dividend yield, KHC could be a great value buy if you're comfortable with the risk. As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post Employee Misconduct Takes a Bite Out of Kraft Stock appeared first on InvestorPlace.