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FC Research Project: WWY Summary

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By 1971simon
December 12, 2003

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Hi Collective,

Again we have successfully researched in significant detail a major corporation. I'm not sure we've uncovered any dirty little secrets but it is safe to say that we have reviewed all the publicly available information and have a good, in-depth understanding of Wrigley's. For that I believe we all deserve a big pat on the back and congratulations! Take yourself out and celebrate!

As the project progressed we certainly developed an understanding that this is a large, well-established industry where there are more knowns than unknowns. AdmiralTroll did some valuation comparisons and posted some musings, along with sahfee and others, on whether Cadbury Schweppes might not be a better investment for our dollar.

On a purely valuation aspect the consensus is that Wrigley's is somewhat overpriced and that the sweet spot for the stock is somewhere in the $40-50s with a high end of $62, depending on various factors (it currently trades in the $55 range). Yet the argument was made that paying full price for a company like Wrigley's is not the greatest of investing sins.

Some concerns were raised throughout the project but listing them by themselves would do a disservice to the original researcher and to Wrigley's itself. I suggest that anyone interested in investing in the confectionary industry, and certainly in Wrigley's, read all of the threads listed below.

Thanks to all 14 researchers on doing such a magnificent job. To those who watched from the sidelines this time, I encourage you to participate on the next Foolish Collective Research Project. The experience can only help you as an individual investor in the future.

1. Company Introduction/Overview by Rozanovitch
http://boards.fool.com/Message.asp?mid=19853139

2. News Gathering by JTODD04
http://boards.fool.com/Message.asp?mid=19909316&recscode=2

Other news...
sahfee: http://boards.fool.com/Message.asp?mid=19894378
Cadbury's debt used to buy Adams by AdmiralTroll: http://boards.fool.com/Message.asp?mid=19917409
A TMF Take: http://boards.fool.com/Message.asp?mid=19899374

3. Products by Splotto
http://boards.fool.com/Message.asp?mid=19942376

4. Marketing/Customers by dlbuffy
http://boards.fool.com/Message.asp?mid=19945796

5. Industry Analysis by BigChiefFool
http://boards.fool.com/Message.asp?mid=19960897

6. Competitors by sahfee
http://boards.fool.com/Message.asp?mid=19850162
http://boards.fool.com/Message.asp?mid=19912683
http://boards.fool.com/Message.asp?mid=19929840

A list of American Competitors by kitkatklub
http://boards.fool.com/Message.asp?mid=19891691

7. Competitive Advantage by TMFWallstgal
http://boards.fool.com/Message.asp?mid=19879095

8. Political and Economic Environment by jackcrow
http://boards.fool.com/Message.asp?mid=19978663

9. Corporate Governance by 1971simon
http://boards.fool.com/Message.asp?mid=19928790&post=true

10.Executive Compensation by TwoCybers and 1971simon
http://boards.fool.com/Message.asp?mid=19928523&post=true

11. A report on Employees was not done

12. Financial Analysis kitkatklub
http://boards.fool.com/Message.asp?mid=19956810
This analysis resulted in high marks for WWY. An excellent comparison.

Financial Comparison between Cadbury and Wrigley by AdmiralTroll
http://boards.fool.com/Message.asp?mid=19897667

13. Valuation Analysis
TMFWallstgal: http://boards.fool.com/Message.asp?mid=19885571
TMFWallstgal's reformatted by AdmiralTroll: http://boards.fool.com/Message.asp?mid=19886144
Mrseabreeze: http://boards.fool.com/Message.asp?mid=19885772
daniel1202: http://boards.fool.com/Message.asp?mid=19889978
AdmiralTroll: http://boards.fool.com/Message.asp?mid=19886388

Neff's GYP Analysis by AdmiralTroll
http://boards.fool.com/Message.asp?mid=19886462

Why not pay full value for a stalwart? by AdmiralTroll
http://boards.fool.com/Message.asp?mid=19890142

Regards,

Simon


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