Kraft Heinz Company (KHC)

[FUNMAN]

I think the dividend is locked in, AND they have FCF to work down debt, AND boost marketing which is exactly what Miguel Patricio, CEO said he intended to do.

In fact in Canada, the loss was attributed to increased promotions. In that regard, he already started to implement his turnaround plan to be announced in Dec.

Also makes sense to work on the turnaround tests in Canada before doing it in the USA. Way less costly to evaluate the ROI up there.

As far as the PPS goes, if YoY revenues can simply be brought back to "no change", stemming the losing tide will be a huge PPS booster.

If they can push revenues back to growth within 12 months, then I think going north of $40 will happen in the blink of an eye on the way to the $50's.

There are a lot of "ifs" in there.

It has definitely been oversold with the worst case scenarios priced in!

The dividend looks safe...

I still think $40+ within 12 months.