Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, February 17, 2017

Article Excerpt

PROCTER & GAMBLE CO., $91.09, New York symbol PG, is one of the world’s largest makers of household and personal-care goods. Major brands include Tide (laundry detergent), Pampers (diapers), Gillette (razors) and Crest (toothpaste). The stock rose 3% this week on news that activist investor Nelson Peltz, through his firm Trian Partners, now holds $3 billion of Procter’s shares. That stake represents just 1% of the company’s $232.0 billion market cap (the total value of all outstanding shares). Trian has a long history of pressuring companies to improve shareholder value by cutting costs and spinning off less-profitable businesses. Procter has already made moves in that direction. As part of a strategy to narrow its focus on its most profitable brands, the company recently transferred 41 of its beauty brands and their operations to Coty Inc., $18.89, New York symbol COTY. Wella, Clairol, Max Factor and CoverGirl are among the brands that moved over to the leading maker of perfumes and cosmetics. It’s possible Trian may…