Speculating in Takeover Targets Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Speculating in Takeover Targets

ULBI 6.375

+1.0%

Jan 23 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: richardred who wrote (5346)	7/2/2019 3:46:34 PM
From: E_K_S	of 7260

Re: Food companies Debt/Leverage really important they keep it in the low range. Management must have a plan to reduce debt before/after any acquisition IMO. BGS is/was paying down debt. UNFI had assets identified to sell. Even today KHC announced the sale of a cheese facility in Canada for just over $1.1Bln. KHC needs to get their debt lower. I have been measuring leverage/debt to peers and GIS seems to have an ok mix. BGS still too much debt and UNFI looks ok if they can get their retail stores sold (Cub stores). Also look at those write downs on Goodwill for legacy brands. Not good if/when you think all is good and then a surprise write down. All acquisitions come w/ goodwill (probably over valued goodwill too). Keep that in mind. Still think it's a good opportunity to pick up some of these food brands that are being sold. Management must have a plan. The niche brands could work out if there is a way the acquirer can get those products to those specialty buyers. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next