Hi Genie,
I've posted recently about KHC recently, which I can help to summarize:
Essentially, the whole problem of the SEC probe into Kraft Heinz's current major shareholder 3G capital in a potential defrauding case, coupled with poor ability to transform their packaged foods to meet the new healthy demands of today has left KHC with poor earnings reports, and the need to writedown their assets, as well as slashing their dividend payout. Not only that, the way that KHC initially boosted revenue was to reduce prices, so it's not as if they created a more sustainable business model or cut costs, they just reduced their profit margins while raising demand.
Even after KHC's price tanked by 32% since Feb 20, I still think it is extremely risky to buy in while the SEC results are not out yet. If they actually did commit defrauding, you can expect their price to tank further as investors sell off.
Further competitiveness by other American food companies like General Mills and Mendolez in expanding into healthier options means that KHC is squeezed further in terms of future revenues. 2019 will be a really trying year for KHC, which i suggest you hold off from the purchase until at the very least they are cleared of the SEC probe.
Hi Genie,
I've posted recently about KHC recently, which I can help to summarize:
Essentially, the whole problem of the SEC probe into Kraft Heinz's current major shareholder 3G capital in a potential defrauding case, coupled with poor ability to transform their packaged foods to meet the new healthy demands of today has left KHC with poor earnings reports, and the need to writedown their assets, as well as slashing their dividend payout. Not only that, the way that KHC initially boosted revenue was to reduce prices, so it's not as if they created a more sustainable business model or cut costs, they just reduced their profit margins while raising demand.
Even after KHC's price tanked by 32% since Feb 20, I still think it is extremely risky to buy in while the SEC results are not out yet. If they actually did commit defrauding, you can expect their price to tank further as investors sell off.
Further competitiveness by other American food companies like General Mills and Mendolez in expanding into healthier options means that KHC is squeezed further in terms of future revenues. 2019 will be a really trying year for KHC, which i suggest you hold off from the purchase until at the very least they are cleared of the SEC probe.