Stockchase Opinions

Srikanth Iyer Nestle NSRGY-OTC BUY Jul 09, 2012

(Swiss Exchange) If you can get the current dividend yield capture, and ride the volatility in the market for the next 3-6 months, you have a very good security.
$0.001

Stock price when the opinion was issued

food processing
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

BUY
It's a global giant. 50% of sales are in the US, and it's trading a discount to peers. This is on his capitulation list. A great trading name.
BUY
The USD has had a fantastic run, so why not buy these European companies that have so much of their sales in the U.S. You get them at a discount now, so they'll have the wind at their banks for the Euro and Swiss franc turn around against the dollar. He predicts a 5% lift in forex in the next 6-8 months. These companies have great balance sheets and cash in sectors that are global.
TOP PICK
Can pass through inflation costs. Rising dividend. Headquartered in a safe haven. Acquisitions have worked out. (Target price is in CHF.) Yield is 2.45%. (Analysts’ price target is $127.40)
DON'T BUY
NSRGY vs. UL Two quality names that have performed well over time, but relatively expensive. He prefers Danone, #1 in both dairy and plant-based, cheaper. Over the last decade, Danone has maintained its #1 position but has lost market share, stock's not up at all, slow to innovate. UL has outperformed Danone in the past decade. Real catalyst is new CEO who's made sweeping changes that will boost top and bottom line growth.
PAST TOP PICK
(A Top Pick Jul 20/22, Down 6%)

Core holding. Safe, stable, defensive. Dividend payer and grower. The only currency that hasn't seen negative currency appreciation against the USD is the Swiss franc, and it's good to have exposure to it.

BUY

A terrible one-year chart, but if it was in Canadian dollars, it looks much better. He owns this and has seen sizable gains. A good long-term hold and will benefit from a strong currency.

BUY
For a first-time investor

Buy something blue-chip, stable and will grow long term. Don't rush and chase quick gains. Build slowly.

TOP PICK

Trading near a 10-year low. They own 20% of L'Oreal. Trades at 14x PE. Coffee is 25% of their business.  They have 30 brands with $1 billion of sales. The new CEO will prune the underperforming assets. Strong growth ahead. The stock is on sale, because growth slowed due to carrying too brands.

(Analysts’ price target is $106.88)
DON'T BUY
Nestle vs. UL

UL is his choice, as a pretty diversified and pretty safe way to get exposure to EM growth.

BUY
Tariffs -- how to benefit?

Consumer staples are outperforming in the last few days, and that speaks to the advantage of having a balanced portfolio. Companies like KHC, UL, KVUE, and Nestle. It's not that they won't be affected (their costs would go up), but they're far less cyclical than other businesses. Earnings will be much more stable. Earnings could fall 10%, but not 50%. Dividends will be sustained.

Companies like Unilever and Nestle are huge in NA, but huge globally as well.