Kraft Guidance Timing Suspicious

Kraft (KFT) issued a three cent guidance increase trying to strengthen its stock at a critical time. As we complete our turnaround, we're delivering high-quality earnings growth, despite the difficult economic environment," said Kraft Foods' Chairman and CEO Irene Rosenfeld. The interesting comment was “This increased guidance reflects strong operating gains as well as a significant increase in marketing investments versus the prior year” This means that they will be spending money but still feel confident in increasing guidance.

It’s all about the timing. Are they speaking to Warren Buffett? Are they speaking to Cadbury shareholders? Are they whistling through the graveyard?