Home » Bear Case Scenario » Bear Case Scenario for Nestle`s $NSRGY, $KRFT, $GIS, $DANOY, $ASBFY

Bear Case Scenario for Nestle`s $NSRGY, $KRFT, $GIS, $DANOY, $ASBFY

Nestle`s (OTC:NSRGY) is about to release earnings. Ponder this Bear Case Scenario:

Nestle`s over paid for Pfizer infant formula division rather than let the strategic asset fall into the wrong hands. Now they have to make the over bought investment pay off. Never usually works out.

Foreign currency has moved against Nestle. If I had wanted to take FX risk I would have bought a FX product.

Tough economic times makes consumers second and third guess any purchases. Bad news for margins.

George Gutowski writes from a caveat emptor perspective.