Talking Stocks 2.0

[Xelorpepsi]

Originally Posted by Hard_Six

I'm in these for a bit, no worries. And you're right, the TAK and COTY calls are looking good.

I wouldn't touch COTY with a stick:
- Ageing product portfolio (e.g. Max Factor)
- Declining margins
- Highly levered ($7.8bn)
- Poor management team across the board and not sure the appointment of the new CEO, Sur Naby, will change much

If JAB did not control such a large portion of the group, they would be dead by now. I may be completely wrong, but they will have to sell all the valuable brands and assets to their competitors to delever.

The only way for these groups to survive is to keep acquiring challenger brands - It's a highly commoditised space and even P&G, J&J or Unilever struggle to maintain their profitability.