08-01-2019, 12:25 PM
(08-01-2019, 11:56 AM)stockguru Wrote: K is up big today. I don’t own it.
My questing is KHC looks to be breaking out here. Looks like $40
is in the way. Anyone own the name or have any thoughts? Lower
interest rates should help.
KHC is a consumer staples company is currently losing money, recently cut the dividend, does not have an investment-grade credit rating, and forecasts relatively flat/modest earnings for the next couple years. I sold out at $34.61 in February, after they announced the dividend cut. Maybe they can find a way to sell their name brands for a substantial premium over private label brands that are discounted by 30-40%. I haven't seen a meaningful reversal in the trend of such competition eating into their pricing power. Maybe it is on the rebound, but I'm not much of a turnaround story investor.