Unilever Share Discussion Threads

[acsatix] 18/1/2022 15:21

this was supposed to be my safe holding to balance the more risky tobacco shares :)

[philanderer] 18/1/2022 15:19

Unilever risks becoming a takeover target as it pursues GSK's consumer healthcare arm


Sky's Ian King says the maker of Marmite could find itself the subject of unwanted bid interest as shareholders deliver a rebuke over its strategy.

[onehanded] 18/1/2022 15:15

so could be lucky GSK did lol. As fund holders won't go for a higher bid.

[careful] 18/1/2022 15:13

cramer on cnbc said GSK were insane to reject such a fully priced bid.

[kev0856153] 18/1/2022 15:12

Down another 3%. That's 10 billion pounds gone in 2 days.

[spoole5] 18/1/2022 15:11

Margins and ROE still in the 20s here, more important than PE

[pander45] 18/1/2022 15:09

PE means less and less as an indicator. I assume you are monitoring POLY closely. Case in point.

[montyhedge] 18/1/2022 15:00

Undervalued I don't think so high p.e for a ex growth company, analysts worried what they have to pay GSK another 5 billion to 10 billion on what they have offered to get the company.

[pander45] 18/1/2022 14:56

Where is the company statement? They are casually observing the company be seriously devalued.

[spoole5] 18/1/2022 14:50

Wonder how much lower these clowns will let this drop before they throw in the towel.

[philanderer] 18/1/2022 14:40

Yes, Jope and the Board have shot themselves in the foot here. They've left themselves wide open for a takeout.

[roguetraderuk] 18/1/2022 14:16

subzero chance careful. subzero. and the lower the share price goes the higher the debt burden will be, which is already 4 times ebitda and thats too high.

[careful] 18/1/2022 14:06

Will they get shareholder approval?
All of those passive investors with Blackrock ETFs.

I wonder if Larry Fink has made up his mind yet.
The big boys have their own agenda.

[onehanded] 18/1/2022 13:35

More likely a bid for the company now. Someone could really extract value from either a breakup or improve by updating the products. FT online saying a few private equities must be looking as breakup value equivalent to around £54 - £58 share price

[marksp2011] 18/1/2022 13:33

ULVR view on sustainability doesn't apply to the share price :)
I could buy a car with this weeks losses :)

[spoole5] 18/1/2022 13:27

According to sky news unilever aren't giving up. "protracted takeover battle".

[bluemango] 18/1/2022 13:26

#1940 You may be right, but if the deal can only be faulted on cost rather than logic, then why are GSK keen to offload it?

[roguetraderuk] 18/1/2022 13:22

EI, you mention health and beauty. thats their best area which lends itself best to price increases. plenty of missed ops there. look at estee lauder. the food side is a problem area. and in any case, consumer will feel the pinch this year due to rising prices across the board esp energy.
as for the logic i would beg to differ. what profit gains and margins are we looking at there for the gsk unit. certainly not anywhere near what unilever has now. they should be looking at smaller bolts on like tate and spin off non core areas to be able to grow faster/move margins up.

[essentialinvestor] 18/1/2022 13:15

Those same questions have been asked for a number of years now
and the answer appears to be consumers are more likely to pay
a brand premium for health and beauty, which they have been slowly
pivoting towards.

On yesterday news, it's not the logic but the cost that has been questioned,
the later is why it will not happen, rather than the former.

[bluemango] 18/1/2022 13:09

#1937 Agreed.

Two reasons why I exited from these a while ago.

One was the increasing focus on 'woke' rather than what was actually best for the business and its shareholders.

But the other was the out-dated reliance on brands and brand premium. Brand margins probably work best these days in fashion. But in everyday consumer goods like soap? With far more copying and 'own label' products? Because this trend to find cheaper alternatives won't stop at baked beans or mayonnaise.

[roguetraderuk] 18/1/2022 13:05

the board should read geoffrey jones' book from 2005, renewing unilever. now 15 years old, but would refresh minds gone off the tracks.

[roguetraderuk] 18/1/2022 12:58

the question isnt just for unilever but for many others. is the value of a brand now being eroded by own labels and newly formed brands. when money starts getting tight, is the consumer still going to pay a premium for salad cream or do they go supermarket own label?

[essentialinvestor] 18/1/2022 12:40

wad, not really the issue here.

Unilever is still valued at over £90bn, even allowing for this week's carnage.

It's more a case of the future outlook for their existing brands.


A bearish take is the move reeks of desperation,
as I mentioned on the LTI board yesterday morning.


If that is the case, questions then start to be asked about the
longer term outlook for their existing brands.


Are the BOD anticipating a significantly more challenging outlook longer term?.