בס״ד

They’re At The Post… And They’re SOGGY! (POST)

Posted on July 21, 2022

Today’s breakfast treat is brought to you by Weetabix, the phony, extruded-grain packaged edible with a deceptively high sugar content from POST Holdings Inc. (NYSE:POST).

Aw, go on, Al… you’re the clever one…

POST stock has had an extraordinary run, but the world is changing.

And foodstuffs of every variety are facing an unpredictable future.

And that means sooner or later, a pullback in the company’s shares is inevitable.

Our learned conviction is that time is now.

Check out the fundamentals –

  • Post has a P/E of 11.45, a reasonable multiple in a market like this,
  • She pays no dividend, and
  • Sports a P/B of 1.49.
  • BUT… EPS this year are down 33.90%, and
  • EPS for the next five years are expected to be flat (-0.40%), according to consensus.
  • Post also has a Debt/Equity ratio on the high side, at 1.76.

But it’s in the technical realm where we see the greatest evidence of a coming downside break.

Have a look –  

Many happy returns!

Matt McAbby

 

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