Kraft Heinz

The selloff in this stock should not be surprising.  I have been trying to find reasons to own it for two years because of Warren Buffett, but it’s never been about growth; just cost-saving leverage that not only cost it market share but has invited closer SEC scrutiny.

• This is the second quarter in a row the company missed consensus estimates (also missed Feb 19, 2018).
• The stock has been slammed 8 of the 15 times the combined companies have reported.
• The stock peaked on February 2017 at $96.65- has been an ugly stock for a long time.

I must say, at some point there needs to be close examination of hedge fund engineering that has left a trail of destruction from Sears to Toys R Us to Kraft Heinz. 

Elsewhere, the market looks and acts great.  The Fed has gotten together, and so far, sounds like a flock of doves.  If they stay out of the way, and temper quantitative tightening, this rally could go a whole lot further.

Have a great weekend.