Hotshot

Not so much to do with Kosher, but I had Finance Orientation on Thursday and Friday. I got to meet Kraft's CFO. In a company this big, it takes a special occasion for this to happen. I asked him a question about the company's position regarding leasing of assets. He basically told me that the company was so cash rich, it had no need to lose percentages on leasing. That answer doesn't fully account for all benefits of leasing, but I let him get away with that for now. Then I asked him about the recent divestitures, and why they are cutting all these businesses lose if they have as much cash as he says. He told me that these are "tail" businesses, and our resources are wasted on them. He told me that with $3 billion in cash flow a year, $1 goes to dividends, $1 goes to buy back stock, and $1 goes to pay down debt. So basically, they really can't think of anything to do with their money. I'd leverage that cash up and go on an acquisition spree. Even if I couldn't integrate a business, it would still be worth buying it on a cash return basis alone. Short of that, I'd decrease the company's capital investment to a minimum, so that investor's could find better investments for themselves if I couldn't use their money.

Bottom line, I was not exactly thrilled with Kraft's future. I'm definitely not buying any stock for now.

On a separate note, I was able to eat some of the packaged snacks they fed us with at the orientation. And at the cocktail reception, I had to forgo the h'or Deurves, but was able to enjoy the Planters cocktail peanut mixes (OU). And I got away from speaking with the CFO just in time to cut out and make it to a minyan for Mincha!