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The household products industry is viewed as defensive by many investors due to mounting international economic problems and uncertainty as to the growth prospects of the US economy. The larger companies in this industry are able to deal with mass merchants on an even-handed basis, but many smaller ones may need to merge or form joint ventures. Investors need to be selective when evaluating opportunities in this industry.

There has been a lack of interest in household products industry stocks as it is mainly a stable, mature industry in the US and market growth is not likely. However, acquisitions, foreign markets, and product innovation can lead to growth for this sector. Investors need to focus on individual stocks which are timely and participate within current industry trends.

Volume growth cannot be expected to outpace population growth in the US for the household products industry as the industry has matured. However, there is room for international growth for the industry, even with dislocations. Efficiency, acquisitions, and product innovation are the main issues in the industry during the 1990s. Investors need to evaluate these stocks on an individual basis before selection.

The domestic market for the household products industry in the US has matured in the 1990s, and the per-capita use of household products does not have much room for growth. The international market for these products, however, is better, and there has been a revolution in the market and distribution channels in the US. Investors need to seek only the most timely companies in this industry for commitment.

The household products industry has managed to stay in the middle of the pack both in economic growth and development and in investment strength largely through its ability to add innovative variations to its commonplace products and by broadening to the international market where its products are not commonplace. Individual companies that have learned to work with mass merchandisers, have consolidated, and are producing new products will provide special situations for investment in an industry whose securities usually trade at high relative P/E multiples.

The household products industry is more challenging in 1997 because of business method changes that benefit retailers over manufacturers. Distribution has changed and mass merchants may not accept the products that manufacturers wish them to carry. Major household products manufacturers will continue to have the critical mass necessary for business operations.

Conglomerate corporation securities are a traditionally high attraction to many investors and while many have proved to be profitable, care must be taken in selecting the right companies in which to invest. Investors who anticipate purchasing conglomerate stocks at relatively low prices and cashing in when the corporations restructure or spin off sections, must be aware as to the profitability of all of a conglomerates operations before investing.

There is good earnings growth for conglomerate corporations, mainly due to cost cutting, although sales are less impressive. Much of the restructuring has been in variable, rather than fixed, costs, and investors must be wary of any announcements. Investors must evaluate these stocks carefully, even though conglomerates perform well during economic uncertainty. These stocks are only moderately ranked for timeliness in 1995.

Stocks in conglomerate companies outperform the market in times of economic uncertainty, since they are less cyclical and defensive than non-diversified corporations. Many conglomerates have restructured and cut costs during the mid-1990s, but whether these are variable or fixed costs is difficult to evaluate. Investors must consider operating changes and how cost cutting is affecting production before committing funds to these stocks.

Investors are discouraged from evaluating diversified companies on a top down basis, since they are not as non-cyclical as once believed. Companies in this industry must be measured on an individual basis. Earnings, cost cutting, and macroeconomics all need to be considered when seeking value. ITT, AlliedSignal, Alco Standard, Kanan, and Triarc are among the stocks that have favorable appeal for long-term investment.

The Dial Corporation is a leading producer of soaps, detergents, household products and food. It also has the added distinction of having an internal management system that enables it to minimize deductions while maximizing profits. Central to this internal system is ChiCor Information Management Inc.'s Deduction Management System software, which identifies and monitors every customer invoice deduction within the company. As a result of the software's implementation, the company was able to save $6 million in deductions in 1997, while improving its accounts receivable performance., The Dial Corporation, producer of antibacterial soap and an industry leader in the manufacturing of detergents, household products and food, has succeeded in minimizing deductions and maximizing profits. What is [...]

Pinnacle West Capital Corp. (NYSE: PNW) announced a dividend hike of 9 percent, or 10 cents per share annually. The board's action will result in an indicated annual dividend of [...]