Kimberly-Clark Corporation (NYSE:KMB) shares have been active lately. Consider this Bear Case Scenario as you ponder the corporate story. 3 years of declining birthrates have hurt sales of the firm’s Huggies diaper brand. Diaper sales in the U.S. or Europe are not rebounding. North American promotions are becoming increasingly expensive with little incremental return. Venezuela is accounts for 4% of operating profit. Geo-political risk is not acceptable in a consumer products company.
George Gutowski writes from a caveat emptor perspective.