• Jeff Matthews

“Scouring the Globe to Find Raw Materials…”

Hands down the most interesting piece of research I’ve come across this morning is a Bear Stearns comment that management of Proctor & Gamble “is scouring the globe to find raw materials” in the wake of rising energy prices and the disruptive impact of Hurricane Katrina.

(While the Bear analyst is lowering P&G estimates all of a penny per share owing to said cost pressures, keep in mind this is a company with 2.5 billion shares outstanding.)

According to the report, P&G management—which I think anybody on Wall Street would rank up there with the best in the world—“has been working for quite a while at insuring an ability to use a variety of input costs [sic]. Nonetheless, we think that the recent announcements by chemical companies that they could be declaring force majeure on key inputs could limit supply and raise costs.”

Somebody ought to tell the bond market what one of the world’s biggest, and best, companies is seeing out in the real world.

Jeff Matthews I Am Not Making This Up The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews’ recommendations.

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