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

To: Investor2 who wrote (33366)	1/30/2009 12:19:57 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78652

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

To: Investor2 who wrote (33366)	2/10/2009 4:52:54 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78652

I2, regarding your PG comment: "Now that's my kind of company! Funny, after all of these years, I've alway coveted P&G but never owned it. It was never cheap enough for me to buy. <:) Maybe now's the time. But then again, maybe I should wait for it to get back to $40. :)" I am getting a little worried that you might be right about PG getting back down to $40. Somewhat reassuring though, I see there's an article in yesterday's Barron's where PG is discussed favorably: "Buy P&G Shares Before They Crest" Snippet: "On a forward price-to-earnings basis, P&G is now cheaper than it's been in 20 years... Is that a reason to jump into P&G? "You better believe it," says Jack Russo, an analyst at Edward Jones. "They give you everything you want," he says, citing sheer scale and product and geographic diversity to go with a strong balance sheet."