This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

P&G May Be Less of a Gamble Than You Think

From this analyst's perspective, any shareholders who own $2 billion worth of a company should feel free to question the business policies and core competencies of the leadership of a publicly traded company. It's a great chance for PG's CEO and board to show what they're made of and not blow the challenge off as "...an unnecessary distraction."

In the world of business consulting, this showdown would be considered excellent grist for the mill. It could raise reasonable questions such as, "Does P&G have divisions and segments that could be spun off as profitable companies, thus rewarding existing shareholders with an immediate booster to PG's share price?"

When the company reports earnings and gives guidance on Friday, I anticipate a raft of announcements and the possibility of some insights into efforts to restructure the global giant whose product line sounds like a Hall of Fame of legendary brand names.

Let's begin with the less-famous "trophies" such as last year's European acquisition of Arbora & Ausonia, which makes diapers, Tampax tampons and adult incontinence products. This Spain- and Portugal-based company alone has sales of more than 500 million euros ($665 million) in Spain and 100 million euros in Portugal.

PG operates in five divisions: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. The Beauty division provides antiperspirants, deodorants, cosmetics, hair care products, hair colors, personal cleansings, prestige products, professional salon products, and skin care products primarily under the Head & Shoulders, Olay, Pantene, SK-II and Wella brand names.

The Grooming division offers razors and blades, electronic hair removal devices, hair care appliances, and shaving products primarily under the Braun, Fusion, Gillette and Mach3 brand names. Every time I shave with my Gillette Fusion razor I realize what a quality product PG offers.

The Health Care division provides feminine care, gastrointestinal, incontinence, rapid diagnostics, respiratory, toothbrush, toothpaste, oral care, and other personal health care products, as well as vitamins/minerals/supplements primarily under the Always, Crest, Oral-B and Vicks brand names.

The Fabric Care and Home Care division offers bleach and laundry additives, air care products, batteries, dish care items, fabric enhancers, laundry detergents, pet care products, and surface care products mostly under the Ace, Ariel, Dawn, Downy, Duracell, Febreze, Gain, Iams and Tide brand names.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PG $82.29 -0.52%
AAPL $125.31 -0.84%
FB $82.82 -0.45%
GOOG $552.57 0.10%
TSLA $190.70 0.07%

Markets

DOW 17,868.28 -108.03 -0.60%
S&P 500 2,077.60 -8.64 -0.41%
NASDAQ 4,924.7410 -22.70 -0.46%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs