Closed my position at 80.20 this afternoon. I think the good news is already built in to the share price, but why trade this? I just needed the cash elsewhere and plan on buying back in after the market corrects. Why not buy and hold this?
bad move. I can see Clorox easily breaking $90. This might help explain why the BOD laughed this off.
Further, do you really think Icahn would have offered $75 if he didn't think it was worth a lot more?
Besides Campbell soup, Clorox is the best consumer non discretionary an investor can buy.
On the heels of the Heinz deal and sudden strong interest in iconic consumer names, I see Clorox breaking $85 very soon and possibly reaching $90 in a month or two. I'm not saying this based on fundamentals, just investor sentiment and money flow.
I also see Campbell in a similar situation where prices could easily reach $42-44 and hit close to $50 in the same time frame.
This is only my opinion. Do your own due dilligence.
Stock is really pretty cheap for the type of small-midsized growth consumer products company that it is. It could easily sport a PE of 20 or more so at a PE of 20x June earnings that would give you $86 a share. And even that's way cheaper than CHD, another small-midsized consumer products company of about the same size (CHD currently sells for 21 times December 2013 earnings). And as far as Carl Icahn is concerned, he's the world's worst investor IMHO. He's just the worst kind of corporate raider. He buys into a company seeking changes and promising he's in it for the long haul. The company makes a change or two, the stock pops a few dollars and Icahn immediately sells his entire position. I've been in CLX for years and plan to hold it for the long haul.