Top Bears Reasons To Sell — Vote below!

Add a New Bears Reason

Company: Kraft Foods (KFT)
Current price:
Headline: (100 character max)
Analysis:
Cancel
42%
agree
7 votes

edit Looming Price War Will Decrease Margins

After skyrocketing commodities prices raised Kellogg's input costs in mid-2008, the company was forced to raise consumer prices. As the recession takes its toll, however, Kellogg will have a difficult time maintaining demand at the elevated prices. Consumers, looking to cut spending, will trade down to lower cost alternatives, such as private label foods offered by competitors like Wal-Mart. This could prompt a price war in which Kellogg will have to lower prices in order to compete.

(100 character max) Cancel
0%
agree
1 votes

edit Kraft has significant exposure to 5 customers

Kraft relies on its 5 largest customers for 30% of its revenue.

(100 character max) Cancel
 
Worried about pump and dump?
We review changes
for stock spam
Want to make Wikinvest better?
We need your help,
contribute today
Do you write software?
We are recruiting
the best engineers
Like Wikinvest?
Spread the word —
Tell your friends!
Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki