No. of Recommendations: 13
I can see some attractions for Kraft Heinz. A cash cow with a 10% earnings yield. More if the current earnings dip ends up transient and they start making ~$3 again.
Sales per share are almost precisely flat for a decade, but they do make money every day and aren't about to go broke. Thought of as a bond substitute, it probably isn't a useless pick. Current yield 6.77%, same dividend for about 7 years but it seems covered for now.
And hey, maybe they'll do a pinch better and the multiples will expand a bit. Who knows? When nobody expects anything good to happen, new bad news is generally ignored and new good news can cause a big change.
Value Line, perhaps unusually, sums it up well: The only certain positive trait is the modest valuation.
Jim
