Here are Doug Kass' top thoughts on some of the biggest stories of the week.
Adding 3 Consumer Staple Names as 'Best Ideas' Shorts
Stated simply, brand loyalty is for oldsters.
As an example, consumers are buying Amazon (AMZN) basics and other private-label batteries rather than the Coppertop or Bunny brands. The same applies to packaged food products.
As a result, prices, margins, cash flows and profits are dropping for many consumer packaged goods companies that previously were seen as possessing deep, broad and impenetrable competitive moats.
Meanwhile, valuations for consumer staples at over 20 times trailing earnings seem unsustainable and could fall over the next 12 months.
More of What's Trending on TheStreet:
Trades of the DaySince I was out for several hours Tuesday afternoon I wanted to summarize the day's trades that were executed (and some that weren't):
- How doubt is OK
- How to tell the lay of the land
Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.
Watch More with TheStreet: