turns out the post-ralcorp deal was not a match made in heaven.makes higher priced nationally branded cereals. while ralcorp liked the fact that post had heftier margins, they didn't know how to manage the business. for the three years post was married to ralcorp, there were all kinds of self-inflicted screw ups. ralcorp didn't support post's brands, they didn't spend enough money on advertising, something that's absolutely crucial when you're competing against the likes of kellogg and general mills with gigantic marketing budgets. their stock was punished to the point where a breakup was the only move that made sense. post was spun off on its own separate stock just on january 27th and ralcorp only kept a 20% interest. it's like they didn't even stay friends and now they're talking trash behind each other's back. now that post is its own company, all the problems that held it back under ralcorp can be corrected and i think the stock has a whole lot more room to run. its stock surged almost $2. while i'm unhappy that the surge occurred before we c

that's 8 percentage points from where it was before ralcorp bought the based.on't see why post can't get that margin back up to 24%, especially when you consider kelloggs and general mills have earnings before margins. post 11.5% market share. now the company plans to stabilize this market share and start taking share again. the important point to recognize here is that the expectations for post are extremely low. so any improvement at all will be viewed as a huge positive. why do you believe post can turn itself around? because the new management seems to understand all the problems and what to do to fix them. post has decided to increase its advising budget by 400 basis points. ralcorp dramatically underspent, which is a big reason post lost so much share under their previous administration. plus post has decided to invest heavily in innovation, something they haven't done for over a decade. i've got some ideas for innovation. yum. then there's pricing. historically post's sweet spot has been price points that are below kelloggs and general mills but higher t