POST HOLDINGS PONZI SCHEME STRATEGY
Posted on 30 May 2017
Post Holdings “Post” Ponzi-scheme is based on a dangerous business model of consistently growing debt to make desperate over-priced acquisitions and over-hyping the potential stock price target in order to attract new investors while staying afloat.
“Post” is constantly losing money and its’ capital-raising strategy is no different to a Ponzi-scheme. “Post” skyrocketing long-term debt has passed $5.8 billion in 2017 and now exceeds its’ $5.27 billion market cap. The only beneficiary’s are senior executives with “Post” CEO Robert Vitale since 1 November 2014 receiving compensation exceeding $18 million as of fiscal year 2016.
“Post” is insolvent, pays no dividends to shareholders and borders on a 1% probability of not going bankrupt. “Post” individual key business operations report zero organic growth potential, declining revenues and declining volume trends coupled with constant exposure to highly volatile raw material pricing.
The “Post” capital-raising style for the 12 over-priced acquisitions made since the Bill Stiritz spin-off of “Post” from Ralcorp in 2012 is a modern day Ponzi-scheme attracting new investors with the lure of potential large profits from unrealistic future over-priced stock price targets.
With no juice remaining in “Post” mature investors are dumping “Post” stock as the company remains unprofitable, insolvent in 2017 and dangerously over-valued.
Zacks Investment Research downgraded shares of "Post" from a hold rating to a strong sell rating in a report released on 23 May 2017.