Kraft Heinz Really Might Be Turning Things Around

avatar

image.png

It was two year ago last month that the packaged-food manufacturer suffered a $15.4 billion writedown because of damage. That day Warren Buffett's Berkshire Hathaway lost more than $4 billion in single day on Kraft Heinz plunge.

At that time CEO Miguel Patricio said the company was making good progress in identifying and addressing the root causes of past performance, as well as setting a strategic direction and was confident that the company was turning around to turn and being set up for long term growth and profitability.

Once again the company beat earnings expectations, but sales missed expectations. CEO Miguel Patricio said the previous six months has been all about damage control, and that the turnaround plan will take time, but Wall Street will see significant progress this year.

Pretty much Kraft Heinz started heading South ever since 3G and Warren Buffet bought the company in 2013. Berkshire Hathaway and 3G Capital bought Heinz in 2013 for $23 billion and merged the company with Kraft two years later.

Video Source: https://www.youtube.com/c/YahooFinance/videos

But Heinz and CEO Miguel Patricio might be really turning the company around now. It wasn't about what he said, but more about what the charts were saying.

On the monthly chart, I see an inverse head and shoulder pattern with price suggesting a breakout.

image.png

Thus, I'm looking for price to continue to move higher to the $50 level.

image.png

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

Posted Using LeoFinance Beta

leofiance stocks pal neoxian leofinance
0
0
0.000
5 comments
avatar

it was a huge news back then when the price plunge. But looking at your chart,it seems they are going back to the right track. should be waiting to jump in

Posted Using LeoFinance Beta

0
0
0.000
Reply