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One of Our Recommended Stocks is Bought - Kellogg (KLG) - UPDATE (Intelligent Investor)

On July 10, 2025, shares of WK Kellogg (KLG) soared by nearly 31% after management announced that Nutella maker Ferrero had agreed to acquire it for $23 a share in cash, or a total enterprise value of $3.1 billion.

Fortunately, KLG was add to the Securities Analysis & Trading list and Dividend Gems Recommended list several months ago. We have been recommending to actively manage KLG, buying it at $16 to $17 and generally selling it above $19 to $20 since late 2024.

UPDATE: in the previous announcement featuring this KLG buyout, we neglected mention that we also recommended KLG in the June 2025 Intelligent Investor.

Mike also highlights his view that it is likely to either be taken private or bought out. 

 

As you can see from the chart below, we nailed reentries and exits many times, adding to our profits. 

Mike even mentioned that he felt there was a good chance KLG would be taken private or sold. Again, he turned out to be right about this.  

KLG was added to the Securities Analysis & Trading Webinar list on November 2024. Below we show some notes from this publication, but note that the main discussion comes from the recorded webinar.

We have been recommending to actively manage KLG, buying it at $16 to $17 and generally selling it above $19 to $20 since late 2024.

KLG (Nov 2024) – shares popped after earnings beat but shares gave up gains after a few days. Get ready to add to my position under 17. I’d be buying here and put open orders under 17.

...it could eventually be taken private and sold off...If it pops, goes to 20 or 21 I’ll take my profits.

KLG was added to the Dividend Gems Recommended list on January 2025. We also recommended active management of KLG with similar entry and exit prices. Below we show some notes from this publication, but note that the main discussion comes from the recorded webinar.

January 2025 DG webinar: We have been discussing KLG off and on for several months. And we recently mentioned it as a possible candidate to be added to the recommended list. We are now adding KLG to the recommended list after the recent selloff because we believe the timing is right.  

February webinar: shares of KLG popped a few days after reporting a quarterly earnings miss and lower earnings and revenues from the previous year on Feb. 11...Regardless, the share price action provided an excellent return for those who built a position around $16 from last month. Clearly, investors should have taken profits on Friday (if not before) when shares went as high as $21.12 before closing just under $20, but soared higher in afterhours trading. 

Moving forward, for those still holding the position we recommend taking profits, as we remain a bit guarded for now given headwinds in the sector along with current valuation. This is one to reenter after shares selloff back down to $17 or less. But for now, shares look to be on fire for some reason. 

June webinar: our recommendation to take profits soon was the right call, as shares began to gradually trend down to eventually break down before the 16 price support after reports of consumers are buying fewer snacks along with bearish analyst reports given KLG recent earnings miss. Moving forward we recommend accumulating.  

Congratulations to subscribers to Dividend Gems, the Securities Analysis & Trading webinars and the Intelligent Investor.

You scored yet another big win.


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