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  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    In 1977, one of the people who interviewed me when I was hired at General Mills had been the product manager for Chipos. It was their failed attempt to compete with Pringles. I didn't know of it during the interview. I mentioned PG and how they had overcome a limitation in transportation and storage of potato chips. His reply was dryly saying, "I don't think the American people really want a fabricated potato chip."

    For what it's worth, I willingly pay more for Cascade as it does a better job than competing products including those made by CL in which I own stock as well.
    Jun 12 06:34 PM | 3 Likes Like |Link to Comment
  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    Kilgore, you raise a valid point. The mission is to differentiate one's products from commodities. Value, real or perceived, must be built into the product so that the consumer will pay a premium for it. PG is among a handful of companies who own their own franchises. They have moved out of businesses that could be commoditized (groceries) and into products where consumers will pay premiums. PG is not my sole holding in consumer staples as I believe in diversification. But, if I had to pick the winner, it would be PG.
    Jun 12 05:23 PM | 3 Likes Like |Link to Comment
  • 5 Oversold Dividend Stocks With High Liquidity Growth [View article]
    I really appreciate the efforts of those who contribute articles to this forum. At the same time, sometimes it seems that, occasionally, an article will be a numbers game and not analysis. I have to categorize this article as such.

    The recommendations herein are two MLP's (utilities of a sort), a fashion retailer, a restaurant, and a computer service company.

    The MLP's and the computer service company are capital intensive businesses. Current assets and current liabilities are of little relevance.

    I would hope that a restaurant is turning its inventory every couple of days. It would have no receivables. Therefore, why should working capital grow?

    If a retailer has growing current assets, it may well be that its inventories are out of control.

    Screens are great as starting points. Analysis is incomplete without putting the numbers into the context of the business model.
    Jun 12 04:39 PM | 2 Likes Like |Link to Comment
  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    Kilgore:

    What are you saying about PG that could not be said about any company making a branded consumer product? PG is no different from any company marketing consumer products. Their execution is just better. I do not believe that branded product development is going to be replaced by commodities. It did not work in the Soviet Union and it won't work here.
    Jun 12 01:25 PM | 3 Likes Like |Link to Comment
  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    "most detergent is just as good as Tide but much cheaper"

    First, PG has several brands of laundry detergent at differing price points. Second, I'm sure that several brand managers at Colgate Palmolive and Unilever bet their careers on your postulate. Where are Wisk, Surf, Fab,and Dynamo, just to name a few, today?
    Jun 12 01:20 PM | 3 Likes Like |Link to Comment
  • 10 Food and Beverage Stocks for a Post QE2 Market [View article]
    Eric:

    Thank you for your response and for bringing the issue of the non-recurring gain in KO's financial statements to my attention. I checked their 10K to learn that most of it relates to their investment in Coca Cola Enterprises. While I, frankly, missed this item, I would hope that the analysts who cover the stock did not given that over 61% of KO's ownership is institutional. Notwithstanding non recurring items, KO seems to have competitive investments beaten in terms of operating margins. Their return on sales for the TTM was almost 32%. I agree that this is not sustainable, but if we cut it in half it still bests those of PEP, DPS, and KFT, which range from 6% to 10%.

    Their price performance for the last 12 months far exceeds that of PEP, DPS, and KFT. That may make the stock vulnerable. However, I think we can agree that KO does have a place in an investor's long-term consumer staples portfolio.
    Jun 11 03:07 PM | Likes Like |Link to Comment
  • 10 Food and Beverage Stocks for a Post QE2 Market [View article]
    KO is conspicuous by its absence. If an author is writing about recommended food and beverage stocks, KO should be addressed. Even if an author would not recommend KO, given its size and its coverage, they reasons why not should be disclosed.

    Long: GIS, KFT, KO, PEP
    Jun 11 10:16 AM | 1 Like Like |Link to Comment
  • Exxon and Shell: Drilling Down the Fundamentals [View article]
    I agree with Blue Horse Shoe. XOM, which I do not hold, has a debt to assets ratio of 5% and a debt to equity ratio of 10%. If any balance sheet is strong, XOM's is strong. RDS, which I do own, has a debt to assets ratio of 12% and a debt to equity ratio of 27%. That is hardly weak. I prefer RDS to XOM as its yield is twice that of XOM.

    When Vuru states, "future performance is contingent on the success of its switch to gas and the continuation of high oil prices", I 'm willing to bet that fossil fuels are here for the foreseeable future.

    Long: CVX, RDSB
    Jun 11 09:57 AM | 2 Likes Like |Link to Comment
  • 12 Dividend Stocks You Must Own Regardless of Age [View article]
    One cannot take a car trip without passing a seemingly endless stream of McDonald's stores. We made this observation on trips between New Jersey and Florida. The stores are always busy.

    I find it interesting that they have withdrawn from shopping malls. I used to observe customers lined up in rows several people deep while other fast food operators had more people behind their counter than in front of it. I think it was a decision that they wanted greater control over their environment.

    My wife and I are coffee aficionados. MCD's coffee is superior to that of Dunkin Donuts and on a par with Starbucks.

    Long: MCD
    Jun 10 07:30 AM | 2 Likes Like |Link to Comment
  • 12 Dividend Stocks You Must Own Regardless of Age [View article]
    I agree with slam, except on the issue of MRK. I hold ABT and JNJ as diversified health care companies with pharmaceutical divisions. Otherwise, PEP is a better holding than KFT inasmuch as it is not as vulnerable to private label competition as is KFT.

    The only thing I would add is some exposure to international companies. I know that most of those mentioned are multinationals. I would still add (and I hold) NVS, BCE, RDSB, TD, and TI. I know there are alternatives to those I have mentioned. However, I see no alternative, if an investor is to be diversified, to exposure to currencies other than the US dollar.
    Jun 9 04:41 PM | 1 Like Like |Link to Comment
  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    I have a position in CL in addition to my PG holdings. The two are comparable in several respects. PG ran CL out of the laundry detergent business, but they have fought to a draw in toothpaste.

    PG has better yield and a stronger balance sheet. CL has better margins. Growth prospects seem comparable. At over US$15 Billion, I don't know if CL can be characterized as "nimble". PG, at between US$75 Billion to US$80 Billion, may look ponderous. However, they have shown themselves capable a managing their product portfolio by divesting grocery products and moving to higher margin items such as cosmetics and their OTC alliance with Teva.
    Jun 9 01:11 PM | 2 Likes Like |Link to Comment
  • 5 Must Own Stocks for Dividends and Growth [View article]
    Why pay ongoing management fees and fund expenses on buy-and-hold stocks? If you like these particular stocks, why buy into a fund that will have stocks that you may or may not like?
    Jun 9 12:49 PM | 3 Likes Like |Link to Comment
  • Procter & Gamble Still a Strong Buy After All This Time [View article]
    >>>If you can ... think in terms of buying a business at a reasonable price, then plug your nose and become an owner of Procter and Gamble.<<<

    Which is why PG is my largest position. Ask anyone who worked for a PG competitor. Compete with them at your own peril. You'll probably lose. An axiom I learned even before investing in the stock market: Don't look at a company's stock. Look at its business.
    Jun 9 10:21 AM | 5 Likes Like |Link to Comment
  • As GM Goes Green, So Could Its Shares [View article]
    Dan Akerson is Obama's political appointment. What else should we expect?
    Jun 7 02:39 PM | Likes Like |Link to Comment
  • Germany Continues to Outpace the U.S. in Job Creation [View article]
    Our system allows it. However, it seems to be much easier for a demagogue to come to power in the USA.
    Jun 5 09:08 PM | Likes Like |Link to Comment
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