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Yola Edwards

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SC Johnson and Son Inc.

Yola Edwards

Ranked as the 553rd richest individuals in the world the Johnson family is all about family. SC Johnson and Son Inc., is perhaps most well known for its products such as Windex, Pledge and Glade along with its tag line of "A Family Company" at the end of each commercial. The late patriarch, Samuel Curtis Johnson, great-grandson of SC Johnson, the founder, took over the helm of the family company in 1966, with sales of $171-million (U.S.) and during his tenure he transformed a wax company into an $11-billion dollar family enterprise consisting of four businesses by the time of his death in 2004.

To solve the succession problems, Johnson split the company and formed three additional ones to be headed by his children; S.C. Johnson, A Family Company, a leading global manufacturer and marketer of household products is headed by Dr. H. Fisk Johnson; Johnson Diversey, a leading global supplier of cleaning, maintenance, disinfectant and sanitizing products and services for commercial and industrial customers is headed by S. Curtis Johnson; Johnson Outdoors Inc., a leading world supplier of innovative outdoor recreational products and Johnson Financial Group Inc., a global financial services company with 34 locations in the United States, Switzerland and the Cayman Islands are headed by Helen Johnson-Leipold .

In 1987 Johnson Outdoors went public, trading on the NASDAQ market under the symbol JOUT. Unfortunately, there are only 9.18 million shares outstanding and the average daily volume is about 500 shares, thus it is too thinly traded to be attractive.

At the core of all Johnson family businesses is the belief in the importance of family and community, values and integrity. Helen Johnson-Leipold stated that her father always believed that part of his corporate responsibility was to give back to his employees, as well as to the community where they do business and it goes without saying the views are shared by the entire family.

She further stated that "People are the biggest asset you have. You can't pay for loyalty and dedication, but those things are so important to productivity. If people go to work just to do a job, then they just do their job. If they feel they are part of a community, they put out 120 per cent."

In January, SC Johnson was named the 27th Best Place to work in America and this marked the eighth time it appeared on the Forbes list.

In essence, keeping employees happy means happy customers and more sales.

Wal Mart's founder Sam Walton shared in that belief. In 1970 Walton took the company public and introduced his profit sharing plan which would improve employee's income depending on the profitability of the store. Sam Walton believed that "individuals don't win, teams do".

When he passed away in1992 he was the second wealthiest man in the world behind Bill Gates. The remaining family members now rank as 26th wealthiest.

Shares of Wal Mart have traded in a sideways consolidation pattern for the past three years between $42.30 and $51.50. The stock is once again trading at the upper end of that range however the past two months have witnessed the stock finally trading above the 200-week MA, a feat last seen in 2004. The 200-week MA is still negative but the other averages have turned positive thus there may still be work left before it breaks out of the consolidation, but that should happen this year. The weekly MACD indicates the share price is trending in overbought territory but the daily one is oversold. Additionally, the weekly chart has traced out a smaller bullish pennant pattern which appears ready to breakout. The stock can be purchased on weakness to $48.50 and a close above $50.75 could be considered a potential breakout with an initial target of $59.14 $60.66 over the ensuing three months.

wal mart stores

They may be among the richest families in the world but you would never know they had money as they all remain very humble.

Yola Edwards is a contributing writer and technical analyst for Bell Globemedia Interactive, providing options and technical analysis research on a variety of North American equities.

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