Bill Ackman At Ira Sohn Conference: coverage brought to you by ValueWalk.
William Albert Ackman, more commonly known as Bill Ackman, has an extensive professional profile working for many firms before starting his own.The founder and CEO of Pershing Square Capital, Bill Ackman was born on 11th May 1966. Ackman attended Harvard University and graduated with a Bachelor of Arts degree Manga cum Laude in 1988. Ackman received his MBA from Harvard Business School in 1992.
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Bill Ackman has been in the news as of late mostly related to his long position in J.C. Penney Company, Inc. (NYSE:JCP). The struggling retailer reported earnings which investors viewed as slightly positive. Ackman has been discussing his famous short position in Herbalife Ltd. (NYSE:HLF). On the other side of that trade is Carl Icahn who just filed a 13D showing a 16.5 percent stake in the MLM company. David Einhorn and Jim Chanos (who also speak today) were once short the stock. On the other hand, famous investor Dan Loeb (who is not speaking at the conference) is long.
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Bill Ackman at Ira Sohn Conference Live
1:42: Bill Ackman starts with Herbalife joke, focuses on The Procter & Gamble Company (NYSE:PG), says it is a great model. Customers use it from head to toe.
1:44 Ackman says that The Procter & Gamble Company (NYSE:PG) has more potential than shown in earnings. Pershing Square owns 30 million shares of PG.
1:45 Says PG has a culture of winning, has high calibre workforce. Has major EM exposure
1:46 PG up slightly during Ackman’s presentation.
1:48: PG has recognized $10 billion in cost savings by 2016. Could be earning $6/share by 2016, up from $4/share today.
1:50: PG should generate consistent 5 percent organic growth. Key competitors are doing 4-7 percent organic growth. EM exposure is key.
1:53: Ackman says PG should have a 24 percent EBIT margin, just through cost cuts. Has 52-54 percent gross margin potential.
1:55: Says Colgate-Palmolive Company (NYSE:CL) is the closest competitor to The Procter & Gamble Company (NYSE:PG), could have same gross margins despite of being 1/5th of PG’s size.
1:58: Ackman says Pershing has talked to PG’s execs about bloated cost structure, low performance and inefficient organizational design.
1:59: Says Chairman and CEO roles should be separated, CEO Bob McDonald takes care of 21 brands.
2:00: PG taking steps and showing progress on cost cutting plans, but not margin.Says CEO has 2-3 quarters to show that the company is on the right track.
2:02: Estimates a value of $125/share in next two years.
2:05: Calls PG Board first class
Break 15 minutes.