If you’ve read the headlines about Procter & Gamble’s plans for its future lately, you have probably encountered headlines like “Procter & Gamble Set To Shed 100+ Brands” or other similar expressions aimed at noting a shake-up at P&G. At first glance, it sounds like a lot—Procter & Gamble has 170-180 brands, and plans to get rid of about 100 of them, conjuring up the image that it’s shedding half its portfolio or something that sounds similarly drastic.
The thing to keep in mind is this: the brands being sold only amount to $8 billion in sales per year. As a point of reference, Procter & Gamble sells $88 billion worth of household cleaning merchandise per year. We are talking somewhere between 9% and 10% of the company being sold off here, not enough to really change the quality of the company or expectations for future growth.
I think the … Read the rest of this article!
One of the truly lucrative opportunities—and you only have to get it right once or twice to permanently change your life—that faced investors in the past five years was the opportunity to buy the incredibly stellar cash-generating asset The Altria Group, Inc. for fire sale prices.
A lot of things came together to put Altria on sale in 2009. Obviously, that was the year of the deepest panic selling from the financial crisis, giving you a chance to do well if you bought any company that has survived over these past five years. But you also had the fact that Altria had recently spun-off Philip Morris International and Kraft (which had also split into what is now Kraft and Mondelez), and a lot of investors didn’t know what would be left standing when it was just a domestic cigarette manufacturer (after losing its most lucrative, fast-growth asset in Philip Morris … Read the rest of this article!
Have any of you been checking out the price action in Noodles & Company since it posted its quarterly earnings figure a few days ago?
After reporting that each share of the stock earned $0.12 in the second quarter of 2014, and posted revenue figures of $99 million. Sales fell 0.6%, and the general operating margin came in at 20.4%. All in all, the business is growing at somewhere between 11% and 12%, which is a perfectly nice rate of growth for a company worth somewhere between $750 million and $1 billion.
Why, then, did the price of the stock fall so significantly? The most recent after-hours trade for the stock came in at exactly $21.00, below the $25.58 figure the stock was trading at before the earnings announcement (for a current 17.9% decline since the earnings announcement).
The company earned $0.24 per share last year. … Read the rest of this article!
Today’s a sad day as I’ve been coming to grips with the fact that I have chosen the wrong topic for my site. I should’ve killed this whole passive income thing and gone into women’s lifestyle blogging.
Are any of you aware of the perks in that field?
Larissa Faw of Forbes Online wrote a piece about what I’m missing out on:
In fact, brand executives and women bloggers say the going rate for a $300 kitchen product is 500 monthly views; an all-expense trip to Hawaii requires at least 20,000 monthly views.
Because I was lucky to have some Seeking Alpha readers follow me over when I launched my site, I could have spent the last year building up a tricked-out kitchen and studying for exams on a Hawaiian beach on the dime of corporate advertisers. Why am I writing about Bed, Bath & Beyond’s stock buyback program when … Read the rest of this article!
All, I just posted an extended analysis (approximately 2500 words) concerning my largest purchase of the year so far. It is a large company with a dividend yield in excess of the S&P 500 and a future total return profile in the range of 14-17%. To access the analysis, please join me at Patreon. Thank you.
… Read the rest of this article!