Kraft foods stock buy or sell

Barnes is a former trader and hedge fund manager who blogs at jackhbarnes.

Buy Sell Hold: Kraft Foods - Business Insider

Buy, Sell or Hold: Brace for Inflation with Kraft Foods Inc. KFT By Jack Barnes , Contributing Writer, Money Morning. Growing up in the s, I remember seeing fears of food inflation affect the life around me. My mom was always canning food and my father was riding the tractor. They had grown up in the s and remembered the key to surviving tough economic times was to be able to feed yourself when you needed to.

Today, we have a generation of fast food buyers. But the problem with that diet — besides its impact on your health — is that it is not as cheap as it once was. That means more eating in, which is good news for Kraft Foods Inc. Kraft is a great source of inexpensive food — particularly for the millions of Americans signing up for food stamps. The company today known as Kraft Foods was formed on December 10, The company changed hands over the next few decades and was purchased by Philip Morris Companies — now known as Altria Group NYSE: MO — in Kraft began operating independently of Altria Group in March , and in replaced American International Group Inc.

AIG as a component in the Dow Jones Industrial Average. Kraft has what I consider a bulletproof business plan.

It is both diversified, but sector specific. It has scales of economy working for it, where smaller firms are going to have to compete on branding. This is not as surprising as it sounds. Kraft is one of the most defensive stocks a portfolio manager can purchase, because it has a large line of staple products that are considered demand inelastic.

While rising food costs have hit the bottom line of most business in the sector, Kraft so far has been able to adjust its serving size per container enough to offset some of the new incremental costs.

The downsizing of serving sizes allows the company to stay competitive without raising prices significantly. Kraft pays a stock dividend of 3. The dividend increase is not surprising, considering Kraft stock has yielded an average of 3. Kraft may not be the most exciting stock on the market, but it offers defensive strength in an uncertain economy.

Kraft makes the food that people bring home to eat.

It is going to be one of the last companies to feel the real impact of lost income. Kraft Foods is a great choice for our covered call strategy. It is highly liquid to start with, and it has an options market that will allow us to leverage up the cash flow from the position, in addition to its dividend rate.

If you are interested in picking up more cash flow from the stock position, look at the February 33 strikes, for some extra income. They are currently bid ask of 27 cents by 28 cents per contract.

Buy Sell Hold , Commodities. Read the original article on Confessions of a Macro Contrarian.

KFT By Jack Barnes, Contrib Tech market is nowhere near the dotcom days. How augmented reality is changing the way we work. You are using an outdated version of Internet Explorer. For security reasons you should upgrade your browser.

Please go to Windows Updates and install the latest version. Trending Tech Insider Finance Politics Strategy Life Sports Video All. You have successfully emailed the post.

Wall Street Alerts

Kraft Foods Jack H. Barnes , Confessions of a Macro Contrarian. Hedging Risk is Available DYDD Publishing: Hedging Risk is Available. More from Confessions of a Macro Contrarian: Recommended For You Powered by Sailthru.

Kraft Foods Buy Sell Hold: Kraft Foods Buy, Sell or Hold: Thanks to our partners. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. Disclaimer Commerce Policy Made in NYC. Stock quotes by finanzen.