Cramer Reverses on Kraft (KFT); Now Sees Split Unlocking Gobs of Value
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jim Cramer made some bullish comments on Kraft (NYSE: KFT) late Thursday.
Cramer was originally against the split of Kraft, but has come around over the last several weeks. He's pulled CEO Irene Rosenfeld from his "Wall of Shame," saying the split of Kraft is probably one of the best moves coming out of the company in over a decade.
Kraft is planning to separate into a high-growth snack company as well as a high-yielding grocery company. The split, Cramer contends, will be the best for both segments, unlocking potential as unmet needs are resolved.
Kraft's grocery business will be primarily focused on the U.S. market, and pay a 5 percent dividend. The snack business will lean more toward international markets, with about 40 percent of current sales coming from outside the U.S.
Cramer believes the split could bring a quick $7 per share for investors, but growth is still in the works. The most recent quarter showed a 5.5 percent earnings beat on revenue up 11 percent year-over-year.
Kraft shares are up 1.2 percent in late-Friday trading.
Cramer was originally against the split of Kraft, but has come around over the last several weeks. He's pulled CEO Irene Rosenfeld from his "Wall of Shame," saying the split of Kraft is probably one of the best moves coming out of the company in over a decade.
Kraft is planning to separate into a high-growth snack company as well as a high-yielding grocery company. The split, Cramer contends, will be the best for both segments, unlocking potential as unmet needs are resolved.
Kraft's grocery business will be primarily focused on the U.S. market, and pay a 5 percent dividend. The snack business will lean more toward international markets, with about 40 percent of current sales coming from outside the U.S.
Cramer believes the split could bring a quick $7 per share for investors, but growth is still in the works. The most recent quarter showed a 5.5 percent earnings beat on revenue up 11 percent year-over-year.
Kraft shares are up 1.2 percent in late-Friday trading.
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