Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, September 23, 2009
General Mills Pop's Past Consensus
General Mills (GIS) popped and wowed the market by beating analyst consensus. Great start for Q1. Such a great start that you have to wonder if they banked a few things to make the year look good after they gave up on last years results. Here is what you have to stay focused on. Overall sales are up 1%. Margins are up dramatically but they had to increase marketing spend by 16%. They must defend this increase as competitors will identify target rich opportunities and come after them.