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

To: bruwin who wrote (2179)	8/7/2012 9:29:02 PM
From: Spekulatius	2 Recommendations Read Replies (4) \| Respond to of 4720

Re PM - this stock could be bought for 10x earnings in late 2008 or early 2009 I know thus because I purchased the stock then and sold it at 12x earnings. At 18x earnings, I don't think it is such a bargain? Pm is clearly a great franchise but I don't think they can grow operating earnings 10% much longer. Also note that some if the earnings/share growth came from taking on debt for share repurchases. PM just like CL are great franchises but are too expensive, single digit growth of earnings in conjunction with la 18x PE cannot create great returns going forward unless you believe in even more multiple expansion. many consumer good companies are just too expensive to create the returns that I am looking for, imo.