Why I like Clorox (CLX)

Clorox Raises Quarterly Dividend to 71 Cents, Beating Estimates

Excerpt:

Clorox Co. (CLX), the bleach maker with products ranging from Hidden Valley salad dressing to Glad trash bags, will raise its dividend by 11 percent, higher than analysts estimated.

Comment:

Why I like it:

• Brands I know and brands we use: Berts Bees, Hidden Valley Ranch, Glad Bags, etc. (I have a container of Bert's Bees at my desk right now! We never buy the cheapest brand trash bags. Last weekend we used multiple large Glad bags to haul trash up from the basement. We stuffed 'em full! Kathee likewise buys Hidden Valley Ranch products
• A nice dividend

Clorox and the Pirate

Icahn Fires Back At Clorox Board, Ups Bid To $80

Excerpt:

On Monday, the board of Clorox dismissed a takeover offer from the company’s largest shareholder Carl Icahn, and instituted a shareholder rights plan to dissuade him from increasing his 9.4% stake. The billionaire is not going quietly though, upping his bid Wednesday morning and shooting back at the board’s claims that his initial offer was “neither credible nor adequate.”

Comment: Daphne and the Pirate is a 1916 silent film. Today Clorox trading at $ 75. ALL CAPS is the corporate raider equivalent of pulling out the big guns!

Icahn bids on Clorox

Icahn Makes $10.2 Billion Clorox Bid to Flush Out Suitors

Excerpt:

Billionaire investor Carl Icahn offered to buy Clorox Co. (CLX), the maker of the namesake bleach, for about $10.2 billion in a move designed to flush out other potential bidders.

Icahn, the company’s largest investor with a 9.4 percent stake, offered to pay $76.50 a share, a 12 percent premium to yesterday’s closing price in New York, according to a filing released today. Including debt, the transaction values Clorox at about $12.6 billion, Icahn said in the filing.

Icahn also urged the Oakland, California-based company to seek offers from other bidders, that could generate savings from a merger. In a letter sent yesterday to Clorox Chief Executive Officer Donald Knauss, the investor said he’s confident that there would be “numerous superior bids” for the company. Possible “strategic buyers” include Procter and Gamble Co., Unilever and Colgate-Palmolive Co., according to the letter.

Comment: A stock in my portfolio. Clorox was at one time owned by P & G: "In 1957, Clorox was bought by Procter & Gamble, a purchase that was challenged by the Federal Trade Commission, which feared it would stifle competition in the household products market. The FTC won, and in 1969, Clorox again was made independent."

Clorox clean cash flow

Where's the Cash Coming From at Clorox?

Excerpts:

Over the past 12 months, Clorox generated $670.0 million cash on net income of $662.0 million. That means it turned 12.2% of its revenue into FCF [free cash flow]. That sounds pretty impressive.

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Clorox's cash flows look clean.

Comment: Good article. Clorox, is one of our stocks. Paying 3.5% dividends