K - Why Kellogg Stock Just Got the Boot From My Portfolio
2023-10-14 07:25:00 ET
Wall Street loves a growth story, which is basically why Kellogg decided to break itself up into Kellanova (NYSE: K) and WK Kellogg (NYSE: KLG) . But there's a problem with this business move that just doesn't make sense to me.
So I sold virtually all of my position before the transaction was completed. Here's why.
Prior to the recent spinoff of WK Kellogg, the iconic food maker had been shifting out of slower-growth businesses (Keebler) and into faster-growing ones (Pringles). It was a good direction for the company to move in. The story was basically that Kellogg had a foundation in the cereal business, on top of which it was building a faster-growing snacking operation.
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Why Kellogg Stock Just Got the Boot From My Portfolio