Procter & Gamble (PG -1.6%), which edged lower on Friday after delivering its FQ2 report (I,...


Procter & Gamble (PG -1.6%), which edged lower on Friday after delivering its FQ2 report (I, II), underperforms today following a downgrade to Neutral from UBS. The firm argues P&G's culture is holding back its cost-cutting efforts, and sees "incremental risk" to its 2012 EBIT guidance. UBS recommends investors consider other consumer names, such as MO, EL, MCD, and KFT.

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Comments (2)
  • PalmDesertRat
    , contributor
    Comments (3765) | Send Message
     
    One indicator I follow is ebitda/total liabilities. this ratio has been deteriorating steadily from a very low level for pg for the several years I've been watching it.

     

    presumably management and the board recognize that the situation is becoming increasingly serious. they must take some decisive action soon,which is why I consider pg a buy
    30 Jan 2012, 02:15 PM Reply Like
  • mike8599
    , contributor
    Comments (588) | Send Message
     
    P&Gs solution is to push retirements and to sell pieces of the business.... not sure if that's the smart move here. I'm watching talent leave P&G while the culture of homogeneous hiring is not producing results - as in Tide pods which is about a year behind schedule and counting.

     

    Much of P&Gs results is off their past before Laffley - McDonald is going take the blame though.

     

    P&G will turn around but not sure if it's going to be quick.... maybe by the end of the year.... alot of systemic issues here, and they are cocky lot.
    30 Jan 2012, 09:19 PM Reply Like
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