General Mills (GIS) Up on Positive Article (K) (RAH) (PEP)

General Mills (NYSE: GIS) is seeing a boost on Tuesday after a positive Barron's article favored the company against rivals in the cold-cereal sector, pushing shares higher in early market movement.

The article said that the General Mills is a good play as "investor's fears of a rebasing of earnings and margins are overdone."

After a few years since the acquisition of Pillsbury, Barron's sees General Mills back on a track of strong marketing execution and investment.

"In a nutshell, it somehow managed to make fiber products that actually taste good. It has increased consumer-marketing spending 55 percent since fiscal 2008. We have been impressed by the company's marketing emphasis on demographic segments that are growing, specifically Baby Boomers and Hispanics," the article says.

Barron's sees General Mills continuing to hold market share in the cold-cereal sector, as in the longer-term concerns may arise over the growth potential of the Cheerios brand after launching its 10th variety.

The writers also added that Kellogg (NYSE: K) is ramping up efforts to regain lost market share, while higher pricing will ease some of the pain seen in the sector. Barron's sees Post, a unit of Ralcorp Holdings (NYSE: RAH), and Quaker Oats, a unit of PepsiCo (NYSE: PEP) being hurt by a return of market share to Kellogg.

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