The current market prices indicate that investors believe that cash flows will be reinvested in a suboptimal manner. We continue to favor content over distribution, given the greater likelihood of restructurings and large returns of capital to shareholders.
Quotes about restructurings (5 Quotes)
I also feel very strongly that Procter Gamble's strategy is not going to be linked only to Procter Gamble. We will see other Dow-type companies that either have some economic sensitivity or a slowing of revenue growth start to announce restructurings.
These turnarounds will be difficult and time is short. Both Ford and GM have already begun broad multiyear restructurings to cut costs. Those efforts will be critical in further evaluating both credits.
And (Chase) is trading at 10 times next year's earnings. I think the stock is very cheap from a valuation basis, and it's not something that will move immediately. There are cost restructurings to go into this merger but over time, I think the stock looks good. And I have a 12-month target of around 60 on that,
Xerox has pretty much stepped on its own toes in a way, by implementing a number of restructurings all at one time last year.