Tobias Levkovich
Gillette Co
G-N
TOP PICK
Apr 09, 2004
A defensive holding. Likes consumer staples at this time. High quality company, and predictable growth. Trades at about 25 X earnings. A little pricey, but worth it because of predictability.
G is a top rated supplier of business outsourcing services worldwide — a steady and reliable business. We like that cash reserves are growing, while debt is retired and shares bought back. It trades at 17x earnings, 3.6x book and supports a respectable ROE of 22%. We recommend setting a stop-loss at $35, looking to achieve $59 — upside potential over 18%. Yield 0.7%