27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Kellogg Company (NYSE:K) announced Monday that it's selling its Keebler, Famous Amos and fruit snack businesses to Nutella owner Ferrero Group.
What Happened
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The value of the deal is $1.3 billion, and it is expected to close by the end of July, Kellogg said in a press release.
CNBC reported Sunday that the Italian chocolatier beat Hostess Brands Inc (NASDAQ:TWNK) for the Kellogg assets, citing people familiar with the situation.
Why It’s Important
Kellogg acquired Keebler in 2001 for $4.4 billion, CNBC said.
The sell-off by Kellogg is an effort to bring sharper focus to its core businesses like Pringles, Cheez-Its and Rice Krispies treats, according to the cable news channel.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
"This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment and better growth," Steve Cahillane, Kellogg chairman and CEO, said in a statement.
"Divesting these great brands wasn't an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow."
What’s Next
Shares of Kellogg, which has a market cap of $19.47 billion, are down nearly 11 percent over the past year. The stock was trading down 1.29 percent at $56.64 at the time of publication Monday.
Related Links:
Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
Kellogg Raids Cookie Jar With New Organizational Structure
Photo by Evan-Amos/Wikimedia.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.