KRAFT SPLIT--GOOD OR BAD?

Kraft has announced plans to split in to two separate companies, spinning the second company off to shareholders by the end of 2012.  One will be a global snack business and the other a North American grocery business.  The grocery business, with revenues around $16 billion a year, would include its' U.S. beverages, cheese and convenience meals with brands like Maxwell House coffee and Jello.  The snacks company would include their high growth European and developing markets units along with their North American snacks and confectionery business, with annual revenues around $32 billion.  It would include brands such as Oreo cookies and Cadbury.

Krafts two largest investors, Warren Buffet (Berkshire Hathaway) and Nelson Peltz are both fine with the split.  Peltz pointed out that it was in the "best interest of shareholders" to separate the high growth snack business from the meat and cheese business.  Allowing investors to take advantage of both companies.  My only real concern is how debt will be divided between the two companies.  We'll just have to wait and see how that goes.  Otherwise, I'm thinking it's a good thing for shareholders.  I'll be adding to my position in Kraft (KFT:NYSE)  in the months before the split.

STOCKS LOWER AFTER CUT ON DEBT WOES

U.S. stock markets ended lower today after Moody's downgraded Ireland's debt rating, while debt woes here at home continue to be a drag on stock performance. 

With not a lot of relief in site on debt worries, I tend to agree with Duke Energy (DUK) CEO, James Rogers, that the U.S. should pass incentives to bring U.S. profits home.  Our corporations have over $1 trillion in profits overseas and would be more likely to bring those profits home if U.S. tax laws were changed.  If companies had some incentive to bring this money home and invest in the U.S. modernizing and upgrading facilities, it would create jobs and provide more economic stimulus than the Obama taxpayer funded program.

On a personal note, I've added shares of Kraft Foods (KFT) to my IRA account and plan to continue an active stock purchase plan for the foreseeable future.  As long as the market lags and prices are down, I'll be looking to build on current positions and maybe add a few new ones to my taxable account as well as my IRA.     

HAPPY INDEPENDENCE DAY!!!

Wanted to wish everyone a Happy Independence Day weekend!  Friday is the start of the holiday weekend, although I have to work Friday and Saturday.  Looks to be a busy weekend for us at work, but I'm looking forward to shopping the 4th of July sales on Sunday and Monday. 

We've had a great few days with the stock market, July is coming in with a bang (pun intended), but I don't look for it to last.  So I'll be looking to get some deals on stock purchases in the month of July.  My first stock purchase for my IRA account will be Kraft Foods (KFT).  You already know the name and most likely, like myself, use a lot of their products.  Their dividend payout is a little over 3%, so they should make a great long term addition to my retirement account.  At the very least I've got 8 1/2 years before I can start taking distributions from the account, so I'm looking to add only stocks I feel comfortable holding for that length of time.  Kraft is definitely one of those stocks. 

Hope everyone has a happy and safe holiday weekend!