Why are Heinz struggling so much ?

[Tommy Tainant]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

 

[Manonthestreet]

No.....they are under investigation for their accounting.....also more choice on the shelves. Never buy a stock going down .....may keep right on

 

[Tommy Tainant]

No.....they are under investigation for their accounting.....also more choice on the shelves. Never buy a stock going down .....may keep right on

Worth keeping an eye on though.

 

[WillowTree]

John effen Kerry!

 

[Cellblock2429]

No.....they are under investigation for their accounting.....also more choice on the shelves. Never buy a stock going down .....may keep right on

/—-/ Buy some Puts if you think it will keep falling.

 

[Markle]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

IF you broke down and watched "Making Money with Charles Payne" on Fox Business news, you'd know, or at least, you'd know what the experts think from various sides.

 

[Polishprince]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

I wouldn't say so. A lot more people are buying private label groceries like Family Gourmet or Great Value. And more folks are going to the Aldi's and Trader Joe's kinds of joints that don't sell these top brands at all. Similar companies like Kelloggs are falling as well.

Maybe they can turn it around, but I don't see much of a presence for these brands on TV commercials. Lots of ads for auto insurance and erectile dysfunction remedies, not that much on basic consumer staples and famous brands.

 

[CrusaderFrank]

John effen Kerry!

My first thought!

 

[Markle]

No.....they are under investigation for their accounting.....also more choice on the shelves. Never buy a stock going down .....may keep right on

I wouldn't buy Kraft Heinz on a dare.

However, I do disagree with never buying a stock on the way down. I believe a good, healthy portfolio should have one or two fliers along with the solid stocks. Yes, it could go down another 10 dollars a share and cost you a couple thousand dollars, carried by the other stocks. If you've done your homework, more likely it will turn and go through the roof.

 

[August West]

John effen Kerry!

John effen Kerry and his wife control 2-3% of Heinz stock you dumbass. When Kerry ran for president a conservative acquaintance of mine bitched because Heinz had a tuna plant overseas. I had to explain to him that there are no Tuna in the Allegheny river. As we say in Pittsburgh, "what makes yinz so dumb"?

 

[candycorn]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

 

[depotoo]

John effen Kerry!

They supposedly had less than a 1% share when it was sold years ago.

 

[william the wie]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

I wouldn't say so. A lot more people are buying private label groceries like Family Gourmet or Great Value. And more folks are going to the Aldi's and Trader Joe's kinds of joints that don't sell these top brands at all. Similar companies like Kelloggs are falling as well.

Maybe they can turn it around, but I don't see much of a presence for these brands on TV commercials. Lots of ads for auto insurance and erectile dysfunction remedies, not that much on basic consumer staples and famous brands.

While I agree with your statement the accounting magic they are being investigated for is very expensive and time consuming to defend against. Hellman's mayonnaise on the other hand has been selling steady since before WWI even though its trademark only goes back to 1926. Not trying to take over entire aisles in the grocery store makes for better transparenancy.

 

[BuckToothMoron]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

It’s a huge company with a lot of moving parts (sku’s). Turning a tanker takes time. I wouldn’t touch it. Watch CNBC next week. Becky Quick will be interviewing Buffett who owns 25% of the company. He rarely ever says anything bad, and is a loooong term investor, but he might shed some light. It’s hard to imagine he didn’t see trouble ahead. Then again, he takes a long time to cut loose his losers (see IBM).

 

[Tommy Tainant]

I dont think we see the full range of Heinz brands in the UK. But Heinz beans is the market leader and Heinz soups take over hal the space in the soup section in every UK store. Philadelphia dominates the cheese spread market. Heinz ketchups are the market leader as well. You cant buy that dominance. Well actually you can and that may be a way out for the current owners. Do they need to spend more on product development ?

 

[Markle]

I dont think we see the full range of Heinz brands in the UK. But Heinz beans is the market leader and Heinz soups take over hal the space in the soup section in every UK store. Philadelphia dominates the cheese spread market. Heinz ketchups are the market leader as well. You cant buy that dominance. Well actually you can and that may be a way out for the current owners. Do they need to spend more on product development ?

Look behind the curtain into what are the top-selling, most used condiments today. Catsup, mayonnaise, mustard, are no longer the most used.

 

[mdk]

John effen Kerry!

Doesn’t have anything to do with the company.

 

[boedicca]

Less people are using ketchup; more are using salsas instead.

 

[miketx]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Everyone knows Kerry is a traitor.

 

[Moonglow]

They own so many top brands it seems perverse that they should lose so much money.
Ive read that the management are just cost cutters and havent got a strategy.
Is it worth buying in at this level ?

Not sure what happens over in Europe but something I’ve noticed here was this:

Heinz Ketchup is probably the most used here in the US.
But when you go to buy canned tomatoes for chili, stew, casseroles or whatever, rarely do you see Heinz as a major players in canned tomatoes; just ketchup.

They make other superior processed foods like Manwich...