We recently published 11 Latest Stocks Jim Cramer Talked About. Kimberly-Clark Corporation (NASDAQ:KMB) is one of the stocks Jim Cramer recently discussed.
Along with OpenAI’s Amazon deal, Kimberly-Clark Corporation (NASDAQ:KMB) also made headlines after it announced that it would acquire household and personal products company Kenvue for $48.7 billion. Cramer discussed Kimberly-Clark Corporation (NASDAQ:KMB)’s CEO and the rationale behind the deal:
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“But I gotta tell you, I love this deal. Okay cause where Kimberly is strong, they’re not. China. Where they’re strong, Europe, Kimberly is not. Kimberly has an understanding in data which shows that Tylenol has not been hurt by any of the problems that the government’s talked about. Remember it’s also just about pregnant women. The lawsuits, that are [inaudible], talc, to Europe, because that was carved off from JNJ. They don’t the same kind of punitive laws over there. They don’t have the huge damages. So that looked bad, it was almost like a poison pill. But it’s not that bad.
“David, they got attacked pretty heavily by Starboard, I know they had three members in the board. . .I mean to me, this is a company that should be, if it weren’t for the fact of RFK, the stock would be at 21, 22.
“They feel like they’re buying, they’re buying this gigantic legal hornet’s nest. And I come back and say that Mike Hsu, who by the way has a very good balance sheet at Kimberly’s, who’s done a lot of right things, had to really undo a lot of stuff, is getting an opportunity to become a much bigger company at a much lower price.
“I happen to think that, they walked me through this deal and I feel great about this deal if only just because they knew that their stock was going to get hit. They didn’t like think, well wait a second, our stock is going to trade up today. They said, listen, it’s going to be a long haul. But they’re creating something which is going to be much bigger that what the street likes right now. The street obviously doesn’t like Kimberly.
“I do think that you have Kimberly-Clark is becoming, suddenly it’s got that line of products that I love. We forget that these are amazing products, everybody has them at home. Your whole bathroom is filled with that stuff. . . .I like the deal. . boy I gotta tell you, I never thought I’d see it this cheap. Kimberly-Clark is one of the greatest brand names of all time and you’re seeing it at a price that basically rolls back years and years and years. I like Mike Shu, I think Mike Shu’s trying to make this company into a great growth company again. And he had to get rid of a lot of things, a lot of mistakes were made. The contracts that they had. The worst thing was that they were making, if you go to Costco’s, they were making Costco’s Kirkland Signature product competing against their own at a fraction of the price. I mean who does that, you can buy ours which we make and charge a dollar or you can buy theirs which we make and they charge 80 cents. I mean, Mike came in and he said, I gotta get out of these deals. They had to undo a lot of dumb things. Dumb.”
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Disclosure: None. This article is originally published at Insider Monkey.
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