PG

Notable Insider Buys and Sells Week Ending May 3, 2019 or Sell in May, Go Away

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  Several new buys this week signaled a return to animal spirits for a small group.  The majority of corporate America beat the drum beat, sell in May, Go Away. The market marched to a new high but not every stock participated. These buys represent value in an overvalued market, perhaps one long in the tooth.  We don’t aim to predict tops or bottoms but when insiders buy large amounts of their own company’s stock, they do it for one reason; to make money. We are highlighting notable buys over $200,000 as this represents something more than window dressing. Buys … Read more

Seeking Blue Revisit

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We developed an investment thesis based on the discounted cash flow valuations of some of the most credit worthy companies in the S&P 500.  All of them blue chips, trading at substantial discounts to their net worth, we called this “Seeking Blue”.  You can see our original analysis at http://workshops.saxangle.com/seeking-blue/.  We decided to revisit this valuation.  The bottom line is that many of these companies remain substantially undervalued.  And this is with our pessimistic scenario of zero growth and pressure on operating margins. The results from July 18,2012 are below:   Description Ticker Price  7/18/12 5/3/13 Change Pfizer PFE  $23.14  $28.96 … Read more

Blue Chip Is The New Alpha – Seeking Alpha

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We loved this provocative article from Seeking Alpha, especially the quote from Alexander Graham Bell.  We may be biased though as we are also long JPM,K,MSFT, INTC, MCD, PG and BP and the author, Stephen Perry, is interning for us this summer. Blue Chip Is The New AlphaJuly 30, 2012  | 3 comments  |  includes: AAPL, ABT, CL, CVX, DD, GE, IBM, JNJ, JPM, KO, MCD, MDT, MMM, MRK, MSFT, PEP, PFE, PG, T, TGT, VZ, WFC, WMT, XOMIts been difficult to find alpha in a market that is so volatile and dependent on global macro events, but I think Ive … Read more

Proctor & Gamble still worth $75 if they shrink revenues by 1% a year for next seven years

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Looks like Bill Ackman has been following our blog and has seen the light with P & G.  The stock is up 6% since we first posted about it (many thanks to Mr. Ackman; up 4.3% so far today) and is poised to continue its rise if Mr. Ackman is willing to push management around a bit.  With the dividend yield and the run towards safe income stocks, PG still looks like a screaming buy.   Based on our DCF assumptions of -1% revenue growth for the next seven years P&G is still worth $75 per share.  The market is … Read more

Kellogg Rockets On Announced Purchase Of Pringles

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Kellogg (K) shot up over 5% on news that the food manufacturer would take over Diamond Food’s (DMND) failed deal with the chip company.  Kellogg will pay P&G almost 2.7 billion for  ownership of Pringles. “In April, Procter & Gamble signed a deal with Diamond Foods, which agreed to buy Pringles for roughly $2.4 billion, mainly in stock. Diamond, which had previously bought Pop Secret and Kettle brand potato chips, heralded the purchase and played up Pringle’s global presence and influence in grocery stores. But the deal got delayed, as Diamond was ensnared by an accounting scandal after short-sellers started … Read more

A race down the down-staircase

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Read this excellent article that outlines the dynamics taking place in the market now.  When Domino Pizza stock doubles in the year the U.S. gets downgraded, market dynamics are at work. It’s a race down the down staircase.   As Middle Class Shrinks, P&G Aims High and Low   By ELLEN BYRON For generations, Procter & Gamble Co.’s growth strategy was focused on developing household staples for the vast American middle class. Now, P&G executives say many of its former middle-market shoppers are trading down to lower-priced goods—widening the pools of have and have-not consumers at the expense of the … Read more