I just posted it just in the spirit of diversification. And, with so many long P&Gers (me too) that praise dividend yields, I thought that DOW presented a comparable opportunity. Long, but with the blues, over P&G!! Maybe David Taylor can pull a rabbit out of the hat.
I mean other than the mantra on this board over P&G's steady dividend yields, what more can be posted about P&G on this board? I wish more P&Gers that are working there would express something positive, even an insider cheerleader, but there's hardly any of that.
Nice to see David Taylor get a new round of incentive/retention options awarded the other day. None of them should be getting anything besides their very wonderful salaries and the options already rewarded to them for the wonderful job they've done to date.
Sorry to have upset you....just trying to help the other investors.
I'm long the stock, just anticipated this #$%$ coming from the market.
In my IRA I've been accumulating DOW in the $44 range over the last year. So, as of today, I'm starting a net yield "paper race" between my P&G stock and DOW over the rest of the year.
Like Michael Dell, take the company private around $30-$35. Get the hell out of this stock haters market, free of hedge fund manipulation, etc. I sold half of my position in the $32 range. Kept the other half, but sold 2017 leaps at the $35 and $40 strike prices. Huge premiums came in, now I can buy them back for 30% of what I sold them for.....only way to outlast this stuff.
Thanks for answering, I respect your opinions. I started working for the company in 1971, mainly in process development and worked in nearly every sector other than chemicals. Saw the purchases of pharmaceuticals, Richardson Vicks, Millstone, etc. Was part of due diligence on a few of them. Later, watched many of the sales, Duncan Hines, Coffee, etc. 40 years later, it's like we've gone full circle. Back to the future.
I don't know if we sold these businesses to Coty well or not, and I realize that our organic growth does not please the market. However, we will get $12.5 billion from Coty, and you would not expect that P&G would decline by $5/share. In any case, what do the shareholders get? Perhaps just hope that the company will find some better investments and developments with that money, and of course, the opportunity to swap for some Coty shares.t
Why doesn't the market trust us? Perhaps they are looking at past acquisitions, IAMS, Millstone, etc. Bought em and sold em within 10 years. So, the market doesn't trust that we'll do any better with the $12.5 billion. Being familiar with due diligence in past P&G acquisitions, we seem to buy high, sending the sellers laughing all the way to the bank, while our marketing folks overhype the market share they'll capture. Then we underperform. Most of these guys are Directors now. That's the reward of leadership whether you succeed or fail.
Terry Lundgren of Macy's can say/makeup anything he wants and the groveling long Macy's analysts lap it up. The Chinese and Brazilians aren't traveling here and not shopping at Macys!!!! Please! If JC beats earnings is there 1 CNBC person who will say that JC is taking their market share?
After the Chinese bid, the bottom is in. Even one of the hypocrite analysts on CNBC last week said it was worth $30+ in a buyout although he had a $22 current price on it due to the PC situation. What a jerk, probably was worrying about having to cover his shorts. Nevertheless, someone else is going to swoop in, sooner or later.
"That is life"...makes you comfortable? That and the 10 year thought process will make you poor. Well, I bought FB at $25, up 400% and sold a lot, plus you can get tremendous 10-15% premiums selling calls, that's in the bank too. I'll take 400% in 2 years.
You've always been the most professional person on the board, so I've always imagined you to be a steadfast individual. So, it's very unlike you to do this "idiot" thing. When I saw the subject, you were the last person that I expected to be the author....it's almost a Jeff Foxworthy act.
It's very fair for people to be disenchanted with P&G's performance.
So far, after closing the $12.5 billion deal with Coty, P&G stock has only deteriorated. At some point in the future, we'll get to exchange some stock for Coty's, but they've already run up 25% on the deal, so you could exchange at the top, and take another whuppin'. These Reverse Morris deals may be good for the company, but unless you are lucky, as was in the case of the Smuckers exchange, there doesn't seem to be anything for the shareholder. Luckily, the Diamond fiasco was exposed before we made the deal, but had that been a year later, you'd have seen Diamond fall from $80 to $10. Screw Reverse Morris Trusts, I'll take a special P&G dividend as none of these deals have benefitted P&G shareholders.
I worked on many of these cash cows that were sold to Smuckers, Kellogg, etc.. I recall the strategy was to use the cash to go into high premium, high margin Beauty and Personal Care products. 10-15 years later, oops that didn't work and we're now selling those products too Coty.
The problem, as I observed, is too many marketing folks with great presentation skills and a lotta hype convincing the company of how much shelf space they're going to capture. Of course, they get promoted, and then now we have this. Sigh!! Enjoy that 3.5% dividend.
Thank heavens, I own a few thousand shares of Facebook, and some other great stocks. What a decade to retire from P&G
Hey..her resident genius is David Filo, Founder. I don't think he's had an original idea for a decade, but he sure has the stock options. Sells a few hundred thousand of them here and there. He was dumping a 100,000 a month back when the stock was at $14/sh. There's some confidence.
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.