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Cramer Fills Up On Mac & Cheese (KFT)

October 22, 2008 3:53 PM EDT
Today's market weakness is likely creating some attractive buying opportunities, and tv celebrity/market pundit/TheStreet.com founder, Jim Cramer is picking up shares of Kraft (NYSE: KFT).

Mr. Cramer sent out a note to his ActionAlertsPlus.com subscribers that he was buying 100 shares of Kraft (NYSE: KFT) at $28. He likes the risk/reward with Kraft. Jimmy said, "Kraft is a restructuring story where new management has streamlined its operation, centralized its profit centers and implemented a new productivity program, which should yield to higher returns."

Additionally, Mr. Cramer added, Kraft margins should increase as Kraft's raw material costs have dropped significantly. Cramer also liked that Kraft's dividend yield is 4% and believes Kraft is extremely undervalued.

One thing I especially like about Kraft is it has extremely, smart and talented investors who are long the company, including Berkshire Hathaway's (NYSE: BRK.A) Warren Buffett and Trian's Nelson Peltz.

Cramer's purchase of Kraft today give him a total of 600 shares of KFT or 0.7% of his ActionAlertsPlus.com portfolio.

Kraft Foods, Inc., through its subsidiaries, engages in the manufacture and sale of packaged foods and beverages.
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