Topic: How To Invest

What is Pat’s commentary for the week of November 20, 2018

Article Excerpt

We recently upgraded our advice on Mondelez from hold to buy in our Wall Street Stock Forecaster. That’s mainly because the company is now starting to see the benefits of a multi-year restructuring plan. Besides improving its profitability, new plants and machinery have also made it easier for Mondelez to alter the size and composition of its snack foods to meet changing consumer tastes in various countries. The company’s stake in Keurig Dr Pepper—now the seventh-largest food and beverage company in the U.S. and the third-largest beverage company in North America—also makes it of interest for our Spinoffs, Takeovers and Special Situations newsletter. As that firm’s largest shareholder, Mondelez has lots of options to increase value for its own shareholders. It could hand out its shares in Keurig to Mondelez shareholders in a small spinoff, or sell its stake and pay them a special dividend. Alternatively, it could make a bid to buy all of the company or use its large holding to…