Stock price when the opinion was issued
They delivered an okay quarter. The dividend is 3.5%. You can buy this and put it away while collecting the 3.5. Investors hate these stocks now, like Clorox, though he likes them.
There has been a good long term trading range in the past almost three years and it is at the low end of its range, As a short term trader you could see $10 to $15 and it also pays a small dividend. He is trying to find companies with a good combination of growth and dividend and that are not overly risky. Buy 3 Hold 18 Sell 2
(Analysts’ price target is $130.65)
Over the last couple of years, they have been working hard on the internal workings of their business. Have been reorganizing, cutting costs and rationalizing. This is as a result that their business is a slow growth one. Thinks they have done a good job in terms of reorganizing. The difficulty is not with what management has done, but is the price that the market is looking for him to pay, close to 20X earnings. He doesn’t understand why a slow growth company like this would demand a 20 multiple.