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  • Church & Dwight's Impressive Growth Through Acquisitions [View article]
    >>> I do not see 2 for 1s here, just cheaper prices. Besides, such promotions usually a store or chain's decision- CHD likely does not dictate them.<<<

    Mose, I live in Florida where Publix is the big player. You're right in that the promotions are the store's decision. However, where a brand is not a franchise, the store dictates that the manufacturer will subsidize or underwrite the promotion.

    When I use the term "franchise", I mean that the brand is so powerful that its absence from the shelves will cause the consumer to shop elsewhere. Tide and many PG brands are the franchise. JNJ has brands that are the franchise. So do GIS, K, KO and PEP. In most other cases, the space on the shelf is the franchise and the retailer will dictate price and terms.

    I like to invest in franchisers and not franchisees.
    Aug 12 03:30 PM | 1 Like Like |Link to Comment
  • Kellogg: Time To Buy The Dip Or Is The Cereal Too Soggy? [View article]
    Oatmeal is probably the healthiest. There is almost no sugar in it. All you need is 3/4 of oatmeal and 1.5 cups of water (or skim milk) and microwave it for 3 minutes. However, that is too much work for many people including myself.

    Then again, if we add fruit and brown sugar or maple syrup........

    In the interest of full disclosure, Long: PEP (who owns Quaker Oats)
    Aug 12 12:56 PM | 1 Like Like |Link to Comment
  • Retirement Strategy: Some Dividend Champions Are On Sale Right Now [View article]
    all the more reason to hold a small position for the dividend yield, but not to look for total return.
    Aug 12 12:03 PM | Likes Like |Link to Comment
  • McDonald's Vs. Chevron: All Dividend Yields Are Not Created Equal [View article]
    >>>In any one company, there might not be mean reversion<<<

    The article discusses the issue on a macro level. Perhaps it would be relevant to investing in broad index funds. However, there was no reversion to the mean for Liz Claiborne, Eastman Kodak, or Bethlehem Steel. Each was a top-tier company the fell victim to changes in distribution, technology, and product sourcing.
    Aug 12 12:02 PM | 1 Like Like |Link to Comment
  • Church & Dwight's Impressive Growth Through Acquisitions [View article]
    >>>Someone once said Wal Mart was not in the "same league" with SS Kresge....ludicrous? Really.<<<

    And with the time and inclination to do so, I could find many more examples going the other way. KMart was simply a poorly managed company.

    >>>People still buy Tide? I'm sure they do, but look at what flies off your local store shelf. Times aren't that good yet folks.<<<

    Yes, look:

    http://bit.ly/1sMI8FD

    I have to admit the Arm & Hammer makes a more respectable showing than I would have thought. However, much of its market share is purchased by supporting two for one promotions. I never see that for Tide or Gain.
    Aug 12 08:15 AM | 1 Like Like |Link to Comment
  • Church & Dwight's Impressive Growth Through Acquisitions [View article]
    >>>The dividend yield wasn't always this low but they increased it 10.7% this year and have a 5-year dividend growth of 34%.<<<

    When there is a very low yield, the opportunity to grow it is easy. It's when a dividend is at a respectable level that increases become challenging. That's not my opinion; it's math.
    Aug 11 10:43 PM | 1 Like Like |Link to Comment
  • McDonald's Vs. Chevron: All Dividend Yields Are Not Created Equal [View article]
    >>>Operating and net margins tend to be mean reverting while sales growth is not.<<<

    Sorry, but my experience from when I became a cost accounting manager in 1979 until my retirement as a CFO in 2010 lead me to think otherwise for the majority of businesses. Technology, fashion trends, and changing product sourcing and channels of distribution rule out reversions to the mean.
    Aug 11 05:53 PM | 1 Like Like |Link to Comment
  • Kellogg: Time To Buy The Dip Or Is The Cereal Too Soggy? [View article]
    mm, those of us who read labels know which cereals have more sugar than others. However, those who add fruit to cereal are adding more sugar, in many cases, than there was in the cereal to begin with. I guess the fruit growers are less than honest too.
    Aug 11 05:46 PM | 2 Likes Like |Link to Comment
  • Retirement Strategy: Some Dividend Champions Are On Sale Right Now [View article]
    >>>I feel strongly that PFE will make some type of deal to enhance share value and add to growth of the pipeline.<<<

    PFE's track record seems to favor acquisitions. There was Warner Lambert for exclusivity on Lipitor. I bet they'd like a do over on the acquisition of Pharmacia for the exclusive on Celebrex.

    While I have a smaller position in PFE, I just don't see the growth to justify where it trades. It is not likely that there is another Lipitor out there and, if there is, they would have to pay a ridiculous premium to acquire the company that discovers it.
    Aug 11 12:45 PM | 1 Like Like |Link to Comment
  • Church & Dwight's Impressive Growth Through Acquisitions [View article]
    Comparing CHD to or implying that CHD is in a league with PG or JNJ is ludicrous. CHD is but one more legacy brands companies that acquires brands in which bigger guys no longer see potential. The only way they can compete is on price and promotions that erode the bottom line.

    In the event that an investor is not familiar with PG, the author qualifies PG as "the company that makes Tide laundry detergent". The only way CHD will take market share from Tide is to support BoGo promotions. I never see Tide on BoGo.

    Long: JNJ, PG
    Aug 11 09:05 AM | 2 Likes Like |Link to Comment
  • Procter & Gamble: Time To Get Going [View article]
    Sharon, there are plenty of jobs that pay more than minimum wage. I live in Florida where there is a shortage of people who can service air conditioners. However, no one wants a job where he or she must crawl into an attic where the temperature may be over 100 degrees.

    Over-the-road trucking jobs are going begging, but people do not want to be away from home overnight.

    There are jobs in the energy business, but people do not wish to relocate.

    A higher minimum wage is to reward people for mediocrity. That has consequences for a nation. However, it will satisfy the ambitions of those in the political class.
    Aug 11 08:03 AM | 1 Like Like |Link to Comment
  • Is Schlumberger's Recent Weakness A Buying Opportunity? [View article]
    I agree. A 1.5% yield is a "dividend in name only".
    Aug 11 07:56 AM | 1 Like Like |Link to Comment
  • Procter & Gamble: Low Risk, New Growth Plan, Solid Dividend [View article]
    I enjoy the interaction with peers. We all learn from one another.
    Aug 10 11:22 PM | Likes Like |Link to Comment
  • Procter & Gamble: Low Risk, New Growth Plan, Solid Dividend [View article]
    >>>No CL does not have a large oral care business, that is mainly dominated by Colgate-Palmolive, PG, and Church and Dwight<<<

    Aren't CL and Colgate-Palmolive one and the same?

    >>>However PG is very good at brand management, especially with its Tide laundry detergent. I know one major grocery store chain got rid of the product because the margins were too small and there were major protests to bring back Tide so laundry detergent is definify creates more loyal customers.<<<

    There are brands that if not found on the retailer's shelves, the consumer shops elsewhere. PG is one of the few with such brands.

    >>>Thirdly, with food and beverage brand loyalty is nonexistent as seen with the big switch to generics, the endless competition, and the focus only on price. I think McDonald spoke about how the consumer always demands a cheaper price, regardless what is on the label.<<<

    For those reasons, PG got out of food. This may or may not have been the right decision.
    Aug 10 12:19 AM | Likes Like |Link to Comment
  • Procter & Gamble: Low Risk, New Growth Plan, Solid Dividend [View article]
    >>>My intuition is that people are more loyal to their toothpaste brand than to their detergent, and that this gives CL an advantage over PG, given that CL has a higher proportion of its business in oral care. Am I wrong?<<<

    You might be. I remember when PG was the first to introduce a fluoride tooth paste in the 1950's. I remember a dentist coming to address my elementary school assembly where he stated that he was not sure the Crest with fluoride had an advantage. However, as the evidence unfolded, many brands fell by the wayside. Bristol-Myers Ipana fell. Unilever's Pepsodent was marginalized. Crest became the number one brand.

    Today there is controversy about Triclosan, the wonder ingredient in Colgate Total. If bad news comes out about it, it will be Katy-Bar-the-Door for Colgate's high end brand.

    Long: PG
    Aug 9 06:07 PM | 1 Like Like |Link to Comment
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