Kraft is feeling down today because he tried to woo Cadbury, but she turned up her nose at the $16.7 billion in flowers and engagement ring.
But you know what? Kraft really is a good catch, even if Cadbury thinks she could do better. Seriously, he's a highly dependable guy, offering a great product line that sells well even in this recession. He also pays out an insane amount of dividend (currently 4.37%).
So, it really doesn't make much fundamental sense anyway for him to have a 5% to 6% technical drop today. Kraft is still the same great guy as he was yesterday and the day before.
Who knows what will happen next in the soap opera that Kraft is entangled in, but whatever it is, I'm still happy to get him for a dipped price of $26.50.
Bought Kraft
September 8th, 2009 at 02:14 pm
September 8th, 2009 at 04:35 pm 1252427735
September 8th, 2009 at 05:36 pm 1252431367
However, neither companies have suffered any fundamental shift in their business. So, this to me anyway, is an intra-day technical dip.
The only problem is, I can't get into Cadbury because, regardless of the outcome, the current stock price has already shot up 40% . That leaves the others, but other potential suitors such as Nestle have trended up along with the market. So, no real deal there.
The only real deal was with Kraft, who dipped hard in an up-market, which once again, did not suffer any fundamental change in their business (that I am aware of) so....
Maybe I'm wrong, but I went for it anyways.
September 8th, 2009 at 08:24 pm 1252441496