Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, May 9, 2014

Article Excerpt

MONDELEZ INTERNATIONAL INC., $37.96, Nasdaq symbol MDLZ, took its current form on October 1, 2012, when the old Kraft Foods Inc. broke itself into two publicly traded companies: Mondelez, which focuses mainly on snack foods, and Kraft Foods Group, which makes a variety of grocery products. The stock rose 7% this week after Mondelez agreed to merge its packaged coffee business with European coffee maker D.E. Master Blenders. (In June 2012, the old Sara Lee Corp., a former recommendation of ours, spun off D.E. Master. It later accepted a friendly takeover offer from Joh A Benckiser, a privately held German firm.) Under this deal, Mondelez will contribute its coffee brands, including Jacobs, Gevalia and Tassimo, to a new company called Jacobs Douwe Egberts. In return, Mondelez will receive $5 billion in cash and 49% of the new firm. Mondelez expects to complete the sale sometime in 2015. It will use the cash to buy back shares and pay down its long-term debt, which stood…