I was retired during these deals and never recall being offered Smuckers shares. Is this exclusively for working P&G people? I never recall an offer in exchange for P&G shares either. I thought it just up to P&G shareholder to buy the purchaser's stock on their own.
Yes, these are tax free transactions for the company, but for the common shareholder who only holds the stock/price and receives the normal dividend, where is the real money from the 3 past transactions (Folgers to Smuckers, Pringles to Kellog, and now Beauty Care to Coty)?. The stock price has hardly moved, and all one can say is that it would have been better to have bought Smuckers, Kellogg, and Coty. The company gets billions, the shareholders haven't seen anything.
I know....if you are working at P&G, getting a nice salary, cheap stock purchased automatically in your profit sharing plan, it's a wonderful world. But, if you retired, held the stock for sentimental reasons, received your 3% dividend, you were better off doing what I did, selling the stock and buying others that went up.
So, again....what is the value of the Reverse Morris Trust to the common non-P&G employed investor......a 3% dividend? Or, should we just be happy that selling these brands via the Reverse Morris Trust kept the stock from falling further?
It reminds me of those companies that keep buying back their stock while the price falls or goes no where. Yes, they are returning "cash to the shareholder". We have all owned one of these. If the stock price doesn't go up, the shareholder isn't getting anything until some hopeful time in the future.
I like Marissa Mayer, but a lot of investors do not; therefore, she'll only draw fire for this. Ken Goldman is a respected CFO, with some gravitas, and this is strictly a financial matter. If I were running PR at Yahoo, I'd bring him forward.
This is all because and IRS technician talked about "dropping a hot dog or lemonade stand" into a publicly traded stock. Whether you like Yahoo or Alibaba or not, I don't think either one can be referred to as a hot dog stand.
Furthermore, there ought to be something in the IRS rules, similar to Reg FD, barring their technicians or commissioners from randomly giving talks like this and spooking any stock in this kind of market. It's either official announced by the IRS to everyone or it is not announced. You just can't have guys like this after a nice lunch with hedge fund guys in the audience popping off like this.
I bought 1500 shares of Yahoo after hours at $41/share.
I kept saying we should have gotten a special dividend, on those sales of Jif, Folgers, Pringles, but was shouted down. After all, we were going to reinvest this cash into more strategic businesses like Healthcare. Now.........Lafley want to dump Healthcare. Other than Pampers, there's no long-term investment or strategy that seems to work. Everything seems to have a 5 year half-life!!! The stock has done nothing, except for.......oh yes....the 3% dividend. It's nice if you're working, but as a retiree, it's been best to sell P&G and diversify.