MONDELEZ INTERNATIONAL INC Common Stock (MDLZ)

In all the right products with high growth associated with them. Think about candy, gum and biscuits. They give 4% to 5% growth. This company has a lot of great growth opportunities ahead of them. Dividend yield of 1.57%.

(A Top Pick Oct 6/15. Up 0.52%.) They have to clean up production lines and reduce the number of units they sell. There are a lot of products to sell and it is too big a stable and they are paring it down by a 3^rd. There are a lot of efficiencies to happen. Exposed on the emerging-market side, which needs to have a little bit of caution. There are a lot of opportunities for them to do very well no matter what happens in the market.

A spinoff from Kraft and is the snack food area. Has some challenges because people are more and more looking for healthier alternatives. They have good European exposure, and that has been a challenging market. The valuation is just a little stretched for him.

He thought it was too expensive, but if it comes back a little more he would be interested.

This has very quick growth. About 44% of the growth comes from emerging markets. Over time that will surface in value. Dividend yield of 1.51%.

They used to have 74k SKUs and are going to reduce this by a third, maintaining focus on core brands. They are improving their manufacturing facilities, some of which are very old and inefficient. They have identified levers to pull. It is making higher highs and made a higher low recently. 1.5% dividend. About 7% less volatile than the S & P. They are going to pull in $2.5 to 3 billion from selling off some of their brands.

(A Top Pick Sept 11/14. Up 24.29%.) Sold his holdings at around $38. At that point, he was rotating from some of the consumer staples names into the more cyclical names. Still a decent name. A little bit expensive.

44% is emerging markets. They are number one in chocolates and candies; number two in gum. Emerging markets are less private label centric so there is less competition. There is big potential in those countries. They have two active shareholders now and will keep management on track.

He likes Mondelez. It has a lot of emergent market exposure. They have marginal expansion that is structurally happening. Feels that it has good growth in terms of the market. He likes it right now.

There is some thought this could be a take out candidate. A very popular stock with brokers right now, because they are undertaking a very ambitious cost cutting program, which is expected to raise margins significantly. He is skeptical in the medium and long term success of that. Not something he would chase at these prices.

The international snack food business that came out of Kraft. It is higher growth than their main staples business. The consumer in emerging markets is growing rapidly. It is an outperformer compared to Staples.

This is 44% emerging markets. They are the number 1 player in biscuits, chocolates, candy and number 2 in gum. Most of those categories have very little private label competition, which is good for pricing. This is really a play on emerging markets for their growing consumer middle class. She sees a lot of runway. FX has been a headwind but she thinks the market has chosen to look through that and to recognize the long-term growth opportunities. The company has been embarking on a margin improvement program as their margins are quite a bit lower than their peers. Yield of 1.6%.

The question is, will this company deliver accelerated growth as expected. The jury is still out. He thinks you are paying quite a high price for what you are getting. Wouldn’t be a buyer at these levels.

44% emerging market exposure. FX is obviously an issue. They are very well placed longer term. She has a longer term view. The stronger growth is from these emerging markets every 2-5 years if you look back that far. This is a chance to buy or buy more.

She likes this company. They will be reporting very soon and earnings have been revised downward because of currency. Have high exposure to emerging markets. She owns this for the long-term secular play of the emerging consumer class in the emerging markets. Operationally they are implementing programs to improve their margins.