PETA Increases its Holdings in Meat Companies
By Marlys Miller Thursday, December 04, 2008
Talk about trickle down economics, we're starting to see how the negative aspects of the current economy are trickling down to other sectors. Now, an unexpected development is surfacing with the People for the Ethical Treatment of Animals, and its stockholdings.
Several years ago, PETA started buying shares in publicly traded meat companies, which allowed the group to work toward influencing the companies' operational protocols. Now, as those shares slip lower, PETA has had to step up its stock purchases in meat-related companies.
Now, this can be spun two ways. On one side, if PETA wants to try to maintain its access to shareholder meetings so it can offer resolutions to generate attention and influence, it has to purchase more stock. In most cases, a shareholder must own at least $2,000 worth of stock in the company for one year prior to a resolution's submission date. If its stock holdings value dips below that minimum at any point during the year, PETA is unable to submit a resolution. That's according to federal regulations. Read More
While having to purchase a few more shares in the stock market will not force them to add any extra bake sales, the slumping economy as a whole is a cause of great concern to these activist groups. They rely chiefly on creating a crisis and watching people send them money. With disposable income getting tighter, these groups are going to see donations drop.