POST (NYSE:POST) is a consumer packaged goods holding company whose products are sold through a range of channels, such as grocery, drug stores, foodservice and the Internet. While Post has been transforming itself from a branded cereal manufacturer into a food holding company with a more growth-oriented portfolio, fiscal year appreciation was due to the acquisition of Malt-O-Meal brands, which strengthened the company’s cereal business. In addition, a strong performance of the Michael Food’s segment and improvements in the company’s protein-focused brands contributed to good results. Post also benefited from a capital raise of equity and debt, which decreased its financial leverage, putting the company in a better position to take advantage of future value-enhancing mergers and acquisitions. We eliminated the position in the fourth quarter of 2015 when the stock traded above our business value estimate.
From Weitz Funds' Research Fund commentary 1st quarter.
