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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (96015)	7/18/2002 11:00:25 PM
From: t2	Read Replies (2) \| Respond to of 99280

I looked at PG and CL and they have enough debt to sink equity price if their bonds get downgraded. What the difference whether is soup, nuts or toothpaste they are selling if companies with similar levels of debt like TYC, AOL, T or V are headed to be $5 stocks. Can you think of multinational consumer stocks that aren't debt laden to the gills. AOL, T are more domestic oriented so there is no benefit from a weak dollar. Don't know much about V except that it has problems. Tyco same thing but you can't compare it to global brands (non-cyclicals). That is the difference as I see it. PG, G should get a surge in profits along with the AA, IP types. (just examples) Did you see the IP CEO this morning say that they expect to realize the benefits of a weak dollar in the future. We are going to see an instant growth in earnings for many stocks. For so many years, we these companies had to contend with a rising dollar. You know that manufacturers have been lobbying for a weaker dollar for a long time...they know it is better for business! That means better cash flow; also many of these stocks already have stock buyback plans. Saw CLX announce one today as well but I don't believe it has nearly the international exposure as some other consumer names. So they are electing to buyback stock instead of paying off debt; nothing wrong with that in their type of businesses.