So I’m sure everyone has seen the news on national ketchup shortage. In the past when news like this broke like the toilet paper situation. The toilet paper stocks rocketed. Sanitizer shortages, same thing.
KHC was green today, but really not that great and low on volume. Any ideas on why the small price action?
Just sensory overload, and it was overlooked?
This stock is top 5 in Buffet’s and Burry’s portfolio. The company has made all the right moves in terms of paying down debt and making the momentum go the right direction as of late.
I’m thinking that being that we are sitting at a 52 week high there is a mental resistance line to cross. However if you remove that it really looks like this stock price is just ready to take off.
Some interesting catalyst I noticed there has been over $65 million in block purchases made. I’m not an expert on these but I couldn’t see any other block purchases anywhere near this size on khc in recent past. (If I’m wrong on this, please show me where to find it.)
Assuming that Burry has exercised his call options or will rather than selling, Buffets giant position, the block purchases today, the consistent upwards momentum, the increase in demand and profitability on the ketchup packets. Things look really really good on this company.
When first researching this stock I really didn’t fully understand all of the fundamentals that have been falling in place over the last year to get us to this point. I looked at this stock as a great hedge if and when the market crashes as consumers rotate back into home cooked meals and groceries with less eating out to save money.
I see this article and it was the final piece of the puzzle for me. If we have another wave of covid,. KHC goes up. If everything opens up, KHC goes up. If stock market keeps ripping and roaring, KHC goes up. Market and economy crash, KHC goes way up.
Extremely Bullish on this company.
I am certainly no expert but I love this brand right now.
If anyone wants to add to my thoughts or even poke holes in my statements I encourage it. Id like to know what everyone else thinks about this company.
Open options interest for this week are trending 100% bullish sentiment
Today they announced a new marshmallow snack for grab and go has station type purchases. Marshmallow is one of the highest profit margins of any food products.