P&G: Tampons and TP
The Nattering One muses... had a conversation with a friend who holds a boatload of PG (Proctor and Gamble). I poked him with the percentage of overseas revenues getting hit by FX.
He replied... no worries on FX, his only concern was... dividends and buy backs exceeded operating and free cash flows... as in, in order to prop the stock and make dividend pay outs, the debt level was snowballing. Overall he is holding and isn't worried because he could take a haircut like 2000 or 2008 or even 50% of the recent $93 high price and it would not affect him.
I am looking at PG's divergence from the SP500 since 02/02/2015 and overall price drop since 12/24/2014 as a potential proxy for future market direction. Usually where tampons and TP (toilet paper) go (not literally), so the broader market shall follow shortly. TBD.
He replied... no worries on FX, his only concern was... dividends and buy backs exceeded operating and free cash flows... as in, in order to prop the stock and make dividend pay outs, the debt level was snowballing. Overall he is holding and isn't worried because he could take a haircut like 2000 or 2008 or even 50% of the recent $93 high price and it would not affect him.
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