braddunc

Comfort Level with Procter & Gamble on the Rise

You assert that: "PG is a well-managed company that produces consumer staples." You offer no supporting information, and I would argue that any company that sells off its most profitable cash-generation brands, i.e. Crisco, Jif, and Folgers instead of utilizing capital to improve and build upon them is just another example of all too common "corporate adventurism.", NOT managerial expertise. The abandonment of these high-profile and successful franchises leaves only three recognizable cash cows upon which to base dependable dividend growth, Crest, Charmin and Tide. After the presumable divestiture of these superb and popular products, it will inevitablly lead P & G to the same level of destitution as, for example, Bristol Myers after it divested itself of its well-known moneymakers, Excedrin, Ipana etc. that has plagued that company for the past 10 to 15 years.
The Smucker family might not have the "benefit" of grossly overpaid management but by scooping up P &G's discarded name brand building blocks, it sure gives them a leg up in constructing a solid and expanding enterprise.