Home » Bear Case Scenario » Bear Case Scenario Kraft Foods $KRFT, $GIS, $NSRGY, $DANOY, $ASBFY

Bear Case Scenario Kraft Foods $KRFT, $GIS, $NSRGY, $DANOY, $ASBFY

Kraft Foods (Nasdaq:KRFT) is about to release earnings. Ponder this Bear Case Scenario:

Volatile changes in input costs relating raw materials such as grains, proteins, and edible oils are a persistent headwind and are likely to face upward pressure over the longer term.

Kraft is focused on mature brands with very modest growth and tired branding. they need something new and exciting or they will be someone’s lunch.

Approximately half of product line is purchased on basis of price. Hard to drive value added or high margin valuations.

George Gutowski writes from a caveat emptor perspective.