No. of Recommendations: 9
The interesting thing is that there is a price for everything. It's quite possible that Kraft Heinz is a buy at these levels.
It's still an ongoing business that does make money in general. If this year were neither unusually bad nor unusually good, they'd be making, what, maybe $2.50 a share? EPS has been pretty flat for the last decade (sales too), and that would represent a number near the bottom of the range.
Not my choice, for a variety of reasons, but I think there's a passable chance that it's worth more than the current quote of $22.60 for those who merely think things won't get materially worse.
As there is no obvious reason to expect the price to do well any time soon, and there is a lot of bad sentiment, it might be a good candidate for repeated cash-backed put writing roughly at the money. I imagine that ought to make at least 10%/year without much difficulty, barring a new big leg down in business results.
Jim
