Thursday, April 25, 2013

Investors seem to love gaudy expense-reduction programs, and Procter & Gamble (NYSE:PG) shares have certainly done better since Bill Ackman's Pershing Square got involved and management announced a $10 billion cost-cutting program. P&G's performance isn't so unusual in the wider context of a hot market for consumer staple stocks, but it's looking more and more like investors are overpaying for the margin improvement potential and earnings consistency of these names. Barring a quick turnaround in volumes, it looks like P&G shares have overshot the mark and offer less compelling potential from today's level.

Follow the link below to continue:
http://www.investopedia.com/stock-analysis/042513/given-procter-gambles-performance-should-weak-volumes-matter-more-pg-cl-chd-enr-un-kmb-ul.aspx

0 comments:

Post a Comment