Add a New Bears Reason

Company: Kraft Foods (KFT)
Current price:
Headline: (100 character max)
Analysis:
Cancel
65%
agree
47 votes

  Kraft has significant exposure to 5 customers

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

(100 character max) Cancel
72%
agree
11 votes

  Kraft is taking on too much expense for too little gain with Cadbury buy.

Kraft is about to undertake more debt than it can handle, to buy a company with exaggerated market presence, and its own cost problems, at an inflated price. This deal will go down in the books as one of the worst business moves of the year, and will hurt both the company's bottom line and its reputation with shareholders for sound business decisions and proper calculation of risk.

(100 character max) Cancel
45%
agree
11 votes

  Kraft angers customers

Kraft recently started charging their magazine subscribers $13.98 for an annual subscription to four issues. For those who do not know, the magazine contains recipes of Kraft products. A possible reason for this move could be due to raising money for their acquisition of Cadbury.[1] This has caused an uproar with their customers. The last thing Kraft wants is to anger them and affect their revenue stream.

  1. "Kraft Foods Brings Readers to a Boil " Article from Wall Street Journal
(100 character max) Cancel
38%
agree
13 votes

  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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. 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. Market data by Xignite. 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