The problem is the upside from here.

Sure. Their underlying business is nobody's pick for the brightest future available.

OTOH, KHC is currently below its book value, and near its liquidation value, so there is a lot more upside than down. Management understands their problems, and they hired a good turnaround CEO who has done this before - at Kellogg's. So a lot of reason for optimism, and they pay a sustainable 7% dividend while you wait. It's been discussed on Falling Knives. I think Greg sees this, too, which is why he decided to hold BRK's stake after taking a closer look and talking to the new CEO last year.

Personally, I've been nibbling at KHC for the past year (no pun intended), looking out for more bad news but not really seeing any. It trades in a fairly narrow range with some short interest as one would expect, with the occasional bump to keep it interesting. It's an investment, not a trade. We'll see if it turns into a nourishing meal or ends up being worthless junk food lol.

abromber