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Strategies & Market Trends : Value Investing

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To: Investor2 who wrote (33366)1/30/2009 12:19:57 PM
From: Paul Senior  Read Replies (2) of 78654
 
AFLC, PG:

Aflac recovering somewhat from management's error and/or stupidity in exposing the company to risky hybrid securities. Looks like company will survive - the positives of having a good business/good franchise. As you point out though, survive at what profit to the long-term investor?: Eight years of stock market gains wiped out by management's big bet folly.

PG might get back to the $40 level you mentioned. Who knows in a depression.

Company sells so many consumer staples.
pg.com

If management doesn't make acquisition or financial blunders and if generic substitutes can be contained, I assume company will be able to raise prices eventually and successfully in an inflationary environment while maintaining sales in a recessionary/deflationary one.

Hard to see PG stock as a significant grower in next few years. OTOH, I see the company as safe and its stock buyable for me now. I'm adding today as company issues an expected not-so-great quarterly report:

cnbc.com|headline|quote|text|&par=yahoo
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