Broken Story, Broken Stock

Posted by: Tom Keene on February 3, 2012

Maintain Buy — While we sure don’t like the fact that PG is losing market share in a bunch of big categories and big markets, we aren’t ready to say that PG is a broken story or broken stock. These market share losses are relatively recent, and we think they can be fixed with sharper pricing, more marketing and more innovation.

—Wendy Nicholson, Citi Investment Research, 02 Feb 2012.

Proctor & Gamble is not Facebook.

It’s a “real” business without some “We are the World” in the S-1 and a 2,000-word (tweet that!) love letter from the Chief Executive Codewriter.

I will passeth judgement on FB after reading a sell-side analysis of the dilution of the lower income statement from sundry RSUs.

In the meantime, all involved, Facebook (Market Cap. $75 Billion?), P&G (Market Cap. $174 Billion) and the marginal and nascent, Davosian tech-tool (Market Cap. $1.298), will seek “more innovation.”

We shall see. I respectfully suggest that Planet FB is doing and will do all possible to avoid being a “broken story, broken stock.” Discuss.

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EconoChat captures Tom Keene's thoughts on economics, finance and investment. He is editor-at-large for Bloomberg News and hosts Bloomberg Surveillance and Bloomberg on the Economy on NYC1130, Sirius 129 and XM 130 and Surveillance Midday on Bloomberg Television. His complete interviews are at Tom Keene on Demand. Look for Tom on twitter @tomkeene

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