Lorne Steinberg Kenvue KVUE-N BUY Mar 06, 2025

Consumer products spinoff from Johnson & Johnson.
Would not buy at current share price (19x earnings).
Growth is slow (3-4%).
Sees better opportunities elsewhere.
Assumed product liability on products - very expensive.

He owns JNJ. Lots of regard for KVUE, but hasn't initiated a position. Needs a period of seasoning to transition from IPO to reality. He's watching and waiting. Meaningful discount to CHD, but of similar quality.

A JNJ spin-off, done with a lot of debt which gives him pause. Their PE is high. Is really concerned is that JNJ also spun off the liability to the talcum powder lawsuits which KVUE now carries.

Consumer health spinoff from J&J. First rate consumer products business. Trading at discount to peers in sector. ~4% dividend attractive. Excellent array of brands in portfolio. Litigation always a concern, but overall not worried for the long term. 

Spun off from JNJ, but shares are up only 6% this year. The activist investor is too harsh, because the entire health/beauty sector is under pressure.

An activist investor is inside the company now. Pays a 3.5% dividend. Not followed that much by Wall Street, but offers decent growth.