SPGI - Church & Dwight: Though Bullish I Sold
2024-03-27 15:06:12 ET
Summary
- Church & Dwight is once again on track after an abysmal 2022.
- The company's bullishness led its management towards a target revision and increase.
- In this article, I explain why, though I am bullish on the company, I decided to sell my shares.
Introduction
Mundane and boring companies often turn into exciting investments over the long term, fueled by compounding power. Church & Dwight ( CHD ) exemplifies this phenomenon. Founded in 1846, Church & Dwight is the leading U.S. producer of sodium bicarbonate (that is, baking soda) and its iconic Arm & Hammer brand finds a place in 86% of American households. Renowned for its consistent results over long periods, this company has become a well-oiled compounding machine thanks to its consistent execution and thoughtful M&A strategy.
After an abysmal 2022 - when the company reported margin compression and the first negative total shareholder return (TSR) in sixteen years - Church & Dwight has rebounded strongly and is now back to all-time highs....
Church & Dwight: Though Bullish, I Sold