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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (19910)	10/19/2004 4:45:35 PM
From: Carl Worth	Read Replies (1) \| Respond to of 78702

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-

To: Paul Senior who wrote (19910)	10/19/2004 8:28:25 PM
From: Investor2	Read Replies (1) \| Respond to of 78702

Hi Paul. I came to SI to post a message to you about CL, and I found that you beat me to the punch! My message was this: Over the years, it worked out well when I added to my CL holdings when the yield rose to 2.2% or above. I just visited Yahoo, and saw a yield of 2.19%. Best wishes, I2