Saturday, July 02, 2005

My plan to spice up the 8/23 Heinz annual meeting.

I'll present the below shareholder proposal at the Heinz annual meeting 9 a.m. Eastern Time on Tuesday, August 23, 2005, at The Westin Convention Center Hotel, 1000 Penn Avenue, Pittsburgh, Pennsylvania 15222. Submitted a similar proposal to Kellogg. A video of my remarks.

http://investor.kelloggs.com/MediaRegister.cfm?MediaID=15614 After logging on fast forward to about 25:30

Dr. Mark Klein who holds Company Common Stock, has notified the Company that he intends to present the following proposal at the Annual Meeting of Shareholders. Adoption of the proposal will require the affirmative vote of holders of a majority of the shares of Common Stock represented in person or by proxy at the meeting. SEC rules require that we reprint the proposal as it was submitted to us. The proposal, as submitted, is as follows:

The shareholders recommend Heinz hire an investment bank to explore the sale of the company.

The GOLD STANDARD test of investment return is PURCHASING POWER with respect to the most sought after consumer goods and services, e.g. housing and education. In recent years Heinz share values failed that test.

Since 1999, Heinz’s nominal share price, unadjusted for the Del Monte transaction, decreased about 27%. On January 1, 1999 Heinz share price was $51.24. The closing price on December 3, 2004 when this proposal was completed was $36.43.

Contrast Heinz share price history in the 1999 to 2004 period with Harvard’s undergraduate tuition which rose 157% from $10,671 to $27,448. Purchasing power-wise Heinz shares also declined significantly over the same period with respect to homeownership. National median home price rose 37%, and in very desirable cities like San Diego over 100%.

In my opinion the principle driving force for such severely escalating prices is feminist careerism which vastly expanded the fulltime workforce without an increase in REAL WAGES. The BUYER POWER of earnings halved since the 1970s because most
families today need two incomes to almost equal the buyer power one had 30 years ago. Put another way most women working fulltime essentially work for nothing.

Busy, overworked parents have little time to nurture and protect their marriages. Hence more competition for scarce housing from today’s 50% divorce rate, and from young adults now so skeptical of the durability of loving commitment they marry late, or not at all.

Just Economics 101 supply and demand theory: Too much consumer demand chasing scarce commodities like private undergraduate education and homeownerhip.

In my opinion the collapse in Heinz shares’ BUYING POWER is greatly magnified by the exploding obesity driven childhood and adult diabetes epidemic. A reflection of the extent of the current epidemic is diabetic home blood test kit suppliers are amongst the leading advertisers on Fox News.

In most families today with both parents working fulltime too few adults and children eat nutritious, portion controlled home cooked meals. Restaurant meals, “t.v.” dinner, and takeout usually contain excessive carbohydrate and fat calories, and very little protein. To reverse the epidemic more mothers need to be at home to prepare nutritious balanced meals, and supervise the children’s snacking.

I believe within a generation at least half the population will become diabetic. The costs of treating diabetes and its devastating cardiovascular, renal, and neurological complications will so threaten the financial stability of the health care system, federal, state and activist local governments will likely impose regulations financially adverse on food processors like Heinz. The fast food restaurant industry is already in the class action tort bar’s crosshairs.

Regulatory and legal scapegoating is safer politically and public relations-wise than addressing the profoundly negative social and economic train wreck wrought by feminist careerism. Pity the feminist sacred cow enjoys general immunity from criticism.

I believe the sale of company is the best way for shareholders to maximize share value.

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