Long Position on K @ $64.36 on 4/9/2014 (Rumor)

Kellogg Company (K) manufactures and markets ready-to-eat cereal and convenience food products primarily in the United States and the United Kingdom.

The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, frozen foods, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods, as well as health and wellness business bars, and beverages.

The company markets cereal products under the Kellogg’s name; and cookies, crackers, crisps, and other convenience foods under various brands, such as Kellogg’s, Keebler, Cheez-It, Murray, Austin, and Famous Amos. The Company sells its products for grocery trade and to supermarkets directly, as well as through brokers and distributors.

Shares have formed a bullish "pennant" after Bloomberg speculated that Warren Buffet may be interested in purchasing this 100 year old company. Here are a few facts about Kellogg. It pays a dividend of $1.84, yielding about 2.90%. The company is debt free and enjoys a price to earning of 13. 

52-Week Trading Range: $55.69 - $67.98

Entry Point: $64.36

Stop Loss: $61.14

Target Price: $70.79

Updates

5/12/2014 9:38:16 AM

K closed at $68.18 after it failed to gain 10% in less than 30 days.

Position closed on 5/12/2014 at price of $68.18 with a 5.94% gain in 33 days.

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