Investment thesis
Source: benchmarkcorporate.com
As interest rates hit rock bottom and risk of recession looms, valuations in the consumer staples sector are at all-time high. Although the inverse relationship between interest rates and valuations is not surprising, extremely low interest rates also act as an incentive for companies in slow-growth industries to look for consolidation.
Church & Dwight (CHD) is one of the companies in the sector that has taken this strategy to the extreme. By not properly integrating its newly acquired businesses, paying hefty premiums and planning to continue spending heavily on