Procter & Gamble’s Allen Lafley on Activist Investors’ Watch List

“With most of the Dow 30 companies up for the year, investors should be heartened that P&G remains in the ‘bargain bin.'”

In this article, Marc Courtenay describes the financial information investors can use to evaluate an investment in Procter & Gamble, a large global company with a worldwide customer base of 4.8 billion people.  Information in this article includes a discussion of P&G’s

  • Efforts to reduce costs by $10 billion.
  • Current stock price and future price predictions.
  • Decision to increase its dividends to stockholders.
  • Projections for earnings growth and the anticipated effect on the stock’s share value.

For more information go to  http://www.thestreet.com/story/12766334/1/procter-gambles-alan-lafley-on-activist-investors-watch-list.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of using financial information when evaluating a corporate stock for investment purposes.
  • Discuss how financial information (dividends, earnings per share, dividend payout, etc.) relate to the share value for a stock like P&G.

Discussion Questions

  1. Because P&G is a large global company with a customer base of 4.8 billion people and is a component in the Dow Jones Industrial Average, do investors still need to evaluate the company before investing in its stock?
  2. Why are financial measures like dividends, earnings per share, dividend payout, and projections for earnings growth important when evaluating a stock investment?
Categories: Chapter_12, Stocks | Tags: , , , | Leave a comment

Post navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: