Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, February 19, 2010

Article Excerpt

KRAFT FOODS INC., $28.92, New York symbol KFT, is close to completing its purchase of U.K.-based Cadbury plc (New York symbol CBY). Cadbury is a leading maker of confectioneries, including chocolate, candy and gum. Investors who hold over 90% of Cadbury’s shares have tendered their holdings to Kraft’s offer. In all, Kraft is paying $19.4 billion in cash and shares. It expects to complete this takeover within the next two months. Meanwhile, Kraft earned $3.0 billion in 2009. That’s up 63.9% from $1.8 billion in 2008. Earnings per share rose 67.8%, to $2.03 from $1.21, on fewer shares outstanding. However, the 2008 earnings were depressed by $1.0 billion of writedowns and costs related to Kraft’s three-year restructuring plan, which it recently completed. The plan included selling or discontinuing less-profitable brands, closing plants and cutting jobs. Kraft’s 2009 sales fell 3.7%, to $40.4 billion from $41.9 billion. However, if you disregard unfavourable foreign-exchange rates, sales would have risen 1.5%. Sales rose 9.9%…