CPB is the canary in the coal mine. What do KHC, PG, K, GIS, PEP, and MDLZ have in common? Billions of dollars of working capital deficits caused by both long and short term borrowings to buy back stock and make acquisitions at premiums based on earnings that are just about to get squeezed by higher distribution costs (think 2 or 3 basis points off gross margin) and an increase in commercial paper rates Look out below.
CPB is the canary in the coal mine. What do KHC, PG, K, GIS, PEP, and MDLZ have in common? Billions of dollars of working capital deficits caused by both long and short term borrowings to buy back stock and make acquisitions at premiums based on earnings that are just about to get squeezed by higher distribution costs (think 2 or 3 basis points off gross margin) and an increase in commercial paper rates Look out below.
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