SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (19910)10/19/2004 4:45:35 PM
From: Carl Worth  Read Replies (1) of 78731
 
interesting to play guess the bottom in CL (i don't own it, so have no stake in the race)

certainly they have tremendous brand name recognition which should continue to give them a strong place in the markets they serve (their warning even included reference to expanding market share)

they have a mediocre at best balance sheet, so they get zero value for that IMHO

as such, a multiple of 15x next year's earnings would yield a price of 40 bucks, and that seems about right considering their franchise, adjusted for no earnings growth this year, and probably about 10% growth in the future...obviously 40 also has the added probability of round number support

i'd rather own something like PEP, but CL is probably attractive around 40, especially to sell puts, as worst case you end up with a solid company that would at that point pay a 2.5% dividend

anyone else want to play guess the bottom? -g-
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News