4Yr·

Can someone please explain to me in simple terms (and preferably without stupid comments) why Unilever is performing so "badly" in contrast to Procter & Gamble, for example?

19 Comments

Divmann@Divmann

4Yr

There is no "one" reason, there are many factors.
- Unilever generates relatively high sales in emerging markets. The currency fluctuations have been weighing on the company recently.
- the UK stock market is generally not doing so well and is rather lowly valued, which also has (had) to do with uncertainties due to Brexit
- Consumer goods manufacturers grow mainly through acquisitions, at some point they get fat and have too many stagnating brands. Then they have to slim down. P&G, Colgate and Nestle also show such phases in their share price.
- Management makes unpopular decisions (like now)

No investment advice, just examples. There are many influencing factors.

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SvenTheMan@Der_Leeh

4Yr

@Divmann What do you mean, “what now”?

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Divmann@Divmann

4Yr

@DerLeeh The correction over the past few days was due to the fact that the market did not view Unilever's takeover attempts favorably.

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Homer@Simpson

4Yr

@Divmann And today it's going up again—it looks like the deal isn't going to happen

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Divmann@Divmann

4Yr

@Simpson They could have waited until tomorrow 😅😡

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Homer@Simpson

4Yr

@Divmann As far as I'm concerned, they could have negotiated until January 31 and then called off the deal 😂 I wanted to buy a few at a good price in February 😡😁

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SvenTheMan@Der_Leeh

4Yr

@Divmann I think it’s a real shame that things apparently haven’t been going so well there for years. I’d like to add a major consumer goods company to my portfolio, and I see Unilever as having the broadest product range—and therefore actually the most interesting option. PG isn’t uninteresting either, but Unilever also has a major presence in the food sector, whereas PG “only” covers the household goods sector.
🤷🏼‍♂️

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Divmann@Divmann

4Yr

@DerLeeh I use a lot of Unilever products in my personal life and like their brands. You should know that P&G is great too, but too expensive for me. With Unilever, the performance over the last few years is a bit off-putting. Personally, I don’t care at all about the stock price trend. I only look at the fundamentals, and what I see is a (relatively speaking) inexpensive company with massive organic growth potential and some of the strongest consumer brands. This is not investment advice; no one knows the future.

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SvenTheMan@Der_Leeh

4Yr

@Divmann That's exactly the point. I see things almost exactly the same way you do. But the fact that it’s constantly in the red just puts me off.
If there were at least a slight upward trend, I could definitely see myself getting on board. But jumping into a money-losing venture with a positive attitude just isn’t my thing… 🙈😂

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SvenTheMan@Der_Leeh

4Yr

@Divmann Something else I could definitely see happening (even if it's unpopular) would be a merger between PG and Nestlé. But unfortunately, their shares still aren't traded here… 🙄

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Divmann@Divmann

4Yr

@DerLeeh I can understand that

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View all 5 further answers

Jan@leveragegrinding

4Yr

Simple words?
1 Management shit
2 Too many dirty brands at
3 Sales not so cool

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Deleted User

4Yr

Comment was deleted

SvenTheMan@Der_Leeh

4Yr

@FinanzministeriumAT I would understand it if the stock had taken a nosedive at some point in recent months. But the sideways and downward trend has been evident for a good decade now...

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