Kraft Foods Inc.
Kraft Foods Inc. is Buffett’s big food gamble. He also has trimmed it after saying the Cadbury deal was too expensive. With shares at $30.65, there is an implied upside of over 14 percent to the consensus price target objective of $35.06. Kraft is not overly expensive as it trades at about 14-times forward earnings expectations. The good thing about this DJIA component is that it offers investors a dividend yield of about 3.8 percent. The target price above $35.00 is one that stands out because the 52-week range is $26.40 to $32.67. The last time shares were above $35.00 was in 2006 and it was 2002 when shares traded in a range of $35.00 to $40.00.
(AP Photo/Charles Rex Arbogast)