A public dispute between the Kraft’s (KFT) CEO and billionaire shareholder Warren Buffett of Berkshire Hathaway (BRK) resulted in negative investor sentiment for much of 2011. But the PR issues may have created an opportunity for investors interested in buying into the company. The company’s diverse line of food products figure to weather any economic storm, good or bad, and sales are predicted to rise from 11% to 12% in 2012. Economic forecasts call for slowed domestic growth for the next year, but Kraft has its foot in over 60 countries with over 50 different brand offerings. Will 2012 be a comeback year for the Kraft empire?
British Petroleum (BP) has recovered from its post-Gulf-Oil-Spill low in 2010 to investor excitement after it dipped more than 50%. Investment guru Seth Klarman sees value in the 4% dividend rate, buying in at an average of $44 per share AFTER the stock had recovered. The stock currently sits around $41 per share, representing more value to potential investors – is this a good chance for investors to follow Klarman’s steps? Or should investors look at competitors like Exxon Mobil (XOM)?
Ford (F) stock took a major hit along with the rest of the market in 2008 as economic sentiment spiraled downward and US car companies were exposed. During the Detroit shake up, bailouts were given, companies were sold or even dismantled, but not Ford. The pioneering company stayed afloat themselves, took corrective measures and emerged from the rubble, eclipsing $14 per share in 2011 – a 1400% recovery from market crash lows. Iconic brands like Mustang may only be the tip of the iceberg Ford’s future as investors and consumers flock back to the “American Made” sentiment as economies in Europe and China remain rocky. With US market share increasing, is it time for investors to take Ford for a ride? Or does future prosperity exist with General Motors (GM) or Toyota (TM)?