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Swapped out my Kraft for Nestles today...
proto123 08-18-2008, 10:44 PM | Post #2551991 |  3 Replies
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Had been holding Kraft (KFT) for some time based on M* recommendation. However, KFT just doesn't seem to be "getting it". They are a conservative company (not a bad thing) but will never grow more than 5-6% a year tops. I switched into Nestles (NSRGY) to get a higher grow rate in excess of 12%. Nestles is a 120+ year old, well managed international company. They are somewhat under followed by the investment community.

I am not expecting a major difference in performance but just feel better with Nestles. Any comments?

Thanks - tony

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Re: Swapped out my Kraft for Nestles today...
mobones 08-19-2008, 1:34 AM | Post #2552005
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Long time ago...........back when I briefly used a broker, I purchased nestle on his recommendation. He told me it was going to trade on the NYSE and I would be getting in on the ground floor. I held it for couple years....kept waiting for it to trade on the NYSE...in the meantime it did nothing....stock price was stagnate. So I finally sold it. I see it still trades OTC. I have no doubt Nestle is a respected company, but I prefer to stay away from OTC stocks as it's easier for me to follow the NYSE and NASDAQ. I did purchase kraft a while back and have no problem holding it. I like quarterly dividends and many of the international companies pay twice a year and I don't care to pay foreign taxes. ............nothing wrong with that it's just part of my criteria when purchasing stocks. ***They are somewhat under followed by the investment community. *** interesting....that's the same line I got 20 years ago. You have to ask yourself...after all these years why is a big company like Nestle STILL under followed? Good luck with it......... MB
Re: Swapped out my Kraft for Nestles today...
meyerr 08-19-2008, 3:25 AM | Post #2552010
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This is a WAG coming from data hid deeply in the arteriosclerotic recesses of my coffee deprived brain, but I wonder about the OTC as a strategy b/c of Nestles involvement in baby formula in Africa and the loud screams and protests that corporate behavior engendered.

Roberta 

as a yield fan.....
kittydog2 08-20-2008, 8:07 AM | Post #2552338
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.....that extra foreign tax bite killed it for me.

On an anecdotal note, I regularly vacation in Asia and note that Nestle's is way behind Cadbury and Hershey in product placement at stores like 7/11. 

 

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