This breakup continues to pay off

Article Excerpt

In October 2019, foodmaker Post sold shares of its BellRing Brands business to the public through an IPO. BellRing makes protein bars, shakes and nutritional supplements. On March 10, 2022, Post distributed its remaining 80.1% stake in that business to its shareholders. They received 1.267788 shares of BellRing for every Post share held. Despite concerns that new weight-loss drugs like Ozempic will hurt their sales, both stocks continue to benefit from the split: Post is up 33%, while BellRing has soared nearly 250%. We feel their strong brands will drive these stocks even higher over the next few years. POST HOLDINGS INC. $90 is a buy. The company (New York symbol POST; Consumer sector; Shares outstanding: 60.4 million; Market cap: $5.4 billion; No dividend paid; Takeover Target Rating: Medium; www.postholdings.com) is a leading maker of cereals and packaged foods. The U.S. supplies 87% of its sales. Post has four operating segments: Post Consumer Brands (36% of sales), Foodservice (38%), Weetabix (8%), and Refrigerated Retail (18%). It also…