Procter Knows What It's Doing

This column was originally published on RealMoney on Aug. 1 at 11:51 a.m. EDT.

We are on the eve of the next big move in Procter & Gamble(PG Quote), the one that comes after the closing of the Gillette(G Quote) deal, and people are selling now? Because the company was candid about raw costs not done coming down yet? Because emerging markets aren't able to double every year because the business gets too big? Because they are bored with the best story out there?

Whatever.

I think it is important when a company like Procter explains its global domination through research and technology spending -- that's what they do -- that investors understand why this story isn't "finished" and it isn't time to jump ship for Colgate(CL Quote) or Avon(AVP Quote). This isn't Kellogg(K Quote) getting too far ahead of General Mills(GIS Quote) so now we have to switch from Kellogg to Mills. This is just another quarter on the way to PG being in charge of its own fate, vs. the Wal-Marts(WMT Quote) and the Safeways(SWY Quote) and the Albertson's(ABS Quote) and the Costcos(COST Quote). ...