Procter & Gamble’s Allen Lafley on Activist Investors’ Watch List

“With most of the Dow 30 companies up for the year, investors should be heartened that P&G remains in the ‘bargain bin.'”

In this article, Marc Courtenay describes the financial information investors can use to evaluate an investment in Procter & Gamble, a large global company with a worldwide customer base of 4.8 billion people.  Information in this article includes a discussion of P&G’s

  • Efforts to reduce costs by $10 billion.
  • Current stock price and future price predictions.
  • Decision to increase its dividends to stockholders.
  • Projections for earnings growth and the anticipated effect on the stock’s share value.

For more information go to  http://www.thestreet.com/story/12766334/1/procter-gambles-alan-lafley-on-activist-investors-watch-list.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of using financial information when evaluating a corporate stock for investment purposes.
  • Discuss how financial information (dividends, earnings per share, dividend payout, etc.) relate to the share value for a stock like P&G.

Discussion Questions

  1. Because P&G is a large global company with a customer base of 4.8 billion people and is a component in the Dow Jones Industrial Average, do investors still need to evaluate the company before investing in its stock?
  2. Why are financial measures like dividends, earnings per share, dividend payout, and projections for earnings growth important when evaluating a stock investment?

Zacks #1 Ranked Healthcare Mutual Funds

When markets are passing though choppy waters, investors often rely on the healthcare sector to safeguard their investments.

Healthcare funds are often considered a safe investment because the demand for healthcare services does not vary with market conditions or upturns or downturns in the economy.  Many of the companies in the healthcare industry, often found in healthcare funds, also pay regular dividends which can help offset a decline in a fund’s share price or increase total return for this type of fund investment.

In this article, Zacks Investment Research, provides a brief description of the five top rated funds listed below

  • Fidelity Select Biotechnology (Symbol FBIOX)
  • Prudential Jennision Health Sciences A (Symbol PHLAX)
  • T.Rowe Price Health Sciences (Symbol PRHSX)
  • Fidelity Select Pharmaceuticals (Symbol FPHAX)
  • ProFunds Biotechnology UltraSector (Symbol BIPSX)

For more information go to

http://finance.yahoo.com/news/zacks-1-ranked-healthcare-mutual-221117226.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Discuss the types of research provided by professional advisory services for fund investors.
  • Help students understand why the healthcare industry may be a safe haven in troubled economic times.
  • Assign one or more of the funds described in this article for more in-depth student research.

Discussion Questions

  1. Why would the healthcare industry be considered a safe haven in troubled economic times?
  2. Do you think this type of fund could help you obtain your personal investment goals?
  3. How would you research one of the specific healthcare funds described in this article?