Kraft Heinz Company (KHC)

(A Top Pick Jan 5/12. Up 11.21%.) Had a 1 for 3 spinoff into 2 separate companies. He bought this leading up to the spinoff which worked out well for him. Started to see some pullbacks in the markets in October November so he stepped out of this.

Spun out their global snack business under Mondelez International (MDLZ-Q), which he loves and would buy here. As far as this one goes, he likes it and holds it. If you have a long-term view, you can buy it.

(A Top Pick Nov 24/11. Up 20.96%.) He is now recommending Mondelez (MDLZ-Q), the spinoff, which is the international snacks business which is faster growing. Not a lot of cash flow or dividend. He continues to hold both.

Spun out their global snack business under Mondelez International (MDLZ-Q). Lower margins than its peers so there is good potential for margin improvement. There is an indicated dividend yield of 4.5%, which is a very nice yield. Expect their earnings growth will be better than their peer group. (See Top Picks.)

Breaking out into parts. Value of underlining parts will become clearer. Is up during announcement. Wait until you have both parts.

Splitting the company, which he likes as it will give some catalyst to the stock. It gives an option to shareholders as to whether they want to keep both companies including the North American groceries which gets a high dividend and stable play and the snack business which will be more of a higher growth company. Beta is very low.

Will be spinning off their snack business October 1. Altogether he feels the 2 portions would be worth $42 a share. Not that much upside and as a Canadian, you don’t get to keep the entire dividend.

Relatively expensive on its history. If you own, consider moving into the gold stocks. (See Top Picks.)

(Market Call Minute) Getting ready to split. If you don’t hold it, don’t buy it here.

A good company that has done a very good job but not one of his favourite companies because it does not have the growth rate he is looking for. Has preferred Nestle.

They are splitting the company into snack foods and North American groceries. You will be open to choose whether you want the high dividend groceries or the high growth snacks business. This has been a great defensive stock. Has moved up nicely and the dividend has been strong.

When they finish the restructuring they will probably get an uplift. Prefers grocery business.

Will be splitting in 2 soon and he thinks the stock has probably reacted to that news. Not overly expensive. A lot of good consumer companies are trading at 15X and 16X earnings. Definitely cheaper than a Coca-Cola (KO-N) or a Pepsi (PEP-N). Expect their earnings will be good this quarter. Haven't increased their dividend over the past 2 or 3 years.