re Nestle and L‘Oreal - yes I could see them selling the stake, but they would incur a huge tax bill as well. l‘Oreal is a great Company and continues to be a great investment that keeps becoming more valuable. I would vote for keeping it, since the short term pop in share price isn’t worth it.
The problem with HAIN is that they have so many different brands so it’s difficult for a huge company like Nestle to do anything with it, HAIN is really a mini-conglomerate of niche brands itself and it might be better to break it up or sell it in pieces, because the brands are too small for a multinational food company that deals with billion dollar product lines. For that reason, I don’t think that HAIN is as valuable than some people think, because it is difficult to rationalize and difficult to grow, Now AMZN took over one of their largest reseller (Whole food), which can’t be great for margins either because AMZN is clearly pushing margins down in favor of volume.
It would surprise me if Kraft purchases CPB, because COB‘s brand are in much worse shape than Krafts, I think. Kraft is no Positionstausch make Rich takeover deals anyways, since their currency (stock) is in the toilet and they have plenty of leverage already. I think these 3 G guy are about done with their playbook. now they need to invest to keep their icecube from melting. |
