Foolish Collective
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

2. News Gathering by JTODD04

Other news...
Cadbury's debt used to buy Adams by AdmiralTroll:
A TMF Take:

3. Products by Splotto

4. Marketing/Customers by dlbuffy

5. Industry Analysis by BigChiefFool

6. Competitors by sahfee

A list of American Competitors by kitkatklub

7. Competitive Advantage by TMFWallstgal

8. Political and Economic Environment by jackcrow

9. Corporate Governance by 1971simon

10.Executive Compensation by TwoCybers and 1971simon

11. A report on Employees was not done

12. Financial Analysis kitkatklub
This analysis resulted in high marks for WWY. An excellent comparison.

Financial Comparison between Cadbury and Wrigley by AdmiralTroll

13. Valuation Analysis
TMFWallstgal's reformatted by AdmiralTroll:

Neff's GYP Analysis by AdmiralTroll

Why not pay full value for a stalwart? by AdmiralTroll



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