Snap. Crackle. Sizzle.
Kellogg Company is a maker of cereal and convenience foods. As of February 2013, their products were marketed in more than 180 countries. Kellogg also markets cookies, crackers, crisps, and other convenience foods, under brands, such as Kellogg's, Keebler, Cheez-It, Murray, Austin and Famous Amos, to supermarkets in the United States.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'K'" symbolprices="67" div_align="right"]
We originally bought Kelloggs in October 2014 at $59.80. Based on our revised valuation range, it is at a high valuation.
Our reduced target is based on a reduced earnings outlook (by about $0.05).
Also note that when market volatility rises it can sometimes shorten the timeframe on our investments. Take the profit.
HIGH VALUATION IN KELLOG AT $67.80 (K-US, $67.80) FULL POSITION
TOTAL RETURN (no dividends): +14.2%
PURPLE CHIPS TARGET: $68.00 POSITION SIZE: FULL (5.0%) P/E: 15.7X DIV: $1.96 (3.2%) MKT CAP: $24B Debt: $7B RETURN ON CAPITAL: 118.9% EARNINGS YIELD: 10.1% 5 YR EPS Growth rate*:4.3% P/E/G Ratio: 4.12 EPS: $3.80 2015 EST.: $4.05 2016 EST.: $4.31
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
