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Chris Stuart questions whether Clorox (CLX +8.9%) is really worth $100/share, as Carl Icahn...

Chris Stuart questions whether Clorox (CLX +8.9%) is really worth $100/share, as Carl Icahn claims it would be to a potential acquirer such PGUL, CL, or KMB. At $100, Clorox, which recently forecast FY2012 growth of just 1-3%, would trade at nearly 25x its estimated FY2012 EPS.
Comments (1)
  • ParkerStorm
    , contributor
    Comments (735) | Send Message
     
    If you owned this stock and were lucky enough to get this bounce, sell. This stock used to be a solid defensive stock, but our current economy will and is driving the shopper to generic brands and in store products. Going long on this puppy with the dept crisis is just giving your money away. The dividend is low and cannot keep up. Just because Icahn buys it will not make it a buy and hold unless we go down below 7% unemployment and they raise the dividend up into the 5% plus range. Neither of these are going to happen in 2011. Good Luck!
    16 Jul 2011, 10:50 AM Reply Like
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