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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (60973)7/4/2018 11:46:38 AM
From: richardred1 Recommendation

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gizwick

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I'm fairly sure your in the Wall Street consensus on CPB & HAIN. I agree about L'oreal being a great investment for Nestles. Much better margins in high end Beauty, cosmetics & skin care than food. IMO why Nestles might sell more L'oreal shares. Nestles has been busy playing catching up to JAB in the coffee space, especially the US market. Blue Bottle and the Starbucks consumer lines helped offset a waning instant coffee market. Awhile back, L'oreal repurchased some shares back from Nestles. This leads me to think they might just sell some more shares along the lines they did before. This while still maintaining a smaller equity stake. Perhaps they can offset some gains by goodwill write-downs on their books? Nestles is very diversified and smart in their acquisitions. They just might cherry pick synergistic food divisions, or those up for food space divestiture? If Campbell's doesn't sell as a whole. CPB's Plum Organics baby food division and Pacific foods fit Nestles. As you mentioned Amazon is moving fast and food companies are digging in. CAG buying a mundane Pinnacle Foods is a good example. Awhile back Conagra decided to exit their private label business selling to TreeHouse Foods. They in turn are working with Amazon. IMO eventually Amazon will have to raise prices. IMO most likely through a Prime membership increase. Convenience & Choice is a wonderful thing in these modern times. However I'm still pumping my own gas these days.<g> Witch in conclusion reminds me unless you control your whole supply chain from cradle to grave. It has to be long term healthy relationship or someone entrepreneurial will be waiting in the wings.

P.S. Nestles

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