RE: Damn! think i have just missed it3 Apr 2018 12:13
It is a very good share, and I also have been in and out. Last time I sold at �80.00 and believe we have not yet seen the bottom, though the fist overhang to the sp (Pfizer) has gone with a nice jump in the sp as we have all seen.
Still, the new structure (splitting the company effectively in 2 units) and more importantly the acquisition of Mead Johnson, still needs to deliver. The former is a no brainer, and long overdue. The former is a different matter all together: to succeed in this new category requires a whole different sets of competencies that RB today simply does not have. Retention of key members of the MJ staff may be an answer but only of the company is willing to learn and adapt significantly. And that is a big if: with each acquisition RB has done, staff of the acquired company did not stay due to huge cultural differences between old and new company.
So, whilst buying like stockplay suggest could be a very intelligent move (kind of wondering if I should not have done that too), but I am going to wait it out and wait until we have good evidence that the MJ acquisition is delivering growth of the new acquired brands. So, I will be looking for 2-3 consecutive quarters of market beating expectations.
If Q1 is not good enough, expect a rapid decline to pre-Pfizer (or lower) levels. All IMHO - DYOR