Steven Conville
Gillette Co
G-N
PAST TOP PICK
Aug 17, 2009
(Top Pick Jul 23/08 Down 7.75%) Still holding. A leader in gold industry. It’s here to provide some protection. Still making good money. Protecting against US continuing to print money.
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%