Stockchase Opinions

Don Lato Colgate Palmolive CL-N HOLD Dec 08, 2010

Has been more of a defensive stock. A little rich at 15X earnings. Won’t grow much with a growing US economy.
$78.650

Stock price when the opinion was issued

misc consumer products
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DON'T BUY

The problem is that following a multi-decade interest rate decline, a rise in interest rates going forward will impact this as it is viewed as a bond proxy. It is an interest rate issue. This is not the time to step in right now.

BUY ON WEAKNESS
Global consumer products that dominates in oral personal care products. They have grown well in the past in emerging markets, but this space is quite competitive. The stock has always traded at high multiples, which has kept her out of this stock and continues to do so.
DON'T BUY
Wall Street is circumspect about it, considering it a stay at home stock. As a battleground stocks now, avoid.
BUY
He saw some upside buying today in options and almost in positive territory on a tough day like today.
WEAK BUY
Struggling today after earnings. Organic sales did surprise, up 10%, while Latin American growth was over 12%. But multinationals with lots of overseas exposure will struggle against the high USD.
BUY
options They bought 3,000 October calls at the $80 strike with shares trading at $77.50. He bought and will upside calls against them as it rallies.
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TOP PICK

Every day, millions of consumers around the world trust our products to care for themselves and the ones they love. colgate-palmolive is a global company serving people in over 200 countries and territories with consumer products that make their lives healthier and more enjoyable. colgate manufactures and markets oral care, personal care, home care and pet nutrition products under such internationally recognized brand names as colgate, palmolive, speed stick, lady speed stick, softsoap, irish spring, protex, sorriso, kolynos, elmex, tom’s of maine, sanex, ajax, axion, fabuloso, soupline and suavitel, as well as hill’s science diet, hill’s prescription diet and hill’s ideal balance. Social media mentions are up 267% in the past 24h.

DON'T BUY

It has amazing pet food and toothpaste businesses, but pays only a 2.37% dividend yield, far below current bond yields. Could go even lower.

BUY

It's been a rough year for staples. CL beat top and bottom line and their supply chain is improving, but they have potentially $200 million in costs from tariffs, but reduced to $75 million. He continues to like it.

BUY

Buy it now at 52-week lows and ride the 2.5% dividend.