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

To: Spekulatius who wrote (2180)	8/7/2012 10:20:22 PM
From: Brian Sullivan	Respond to of 4720

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. I agree.

To: Spekulatius who wrote (2180)	8/7/2012 11:43:33 PM
From: Sergio H	Read Replies (1) \| Respond to of 4720

Can we get your top ten? Also, Bruwin, you are short a few picks.

To: Spekulatius who wrote (2180)	8/7/2012 11:43:35 PM
From: Sergio H	Respond to of 4720

To: Spekulatius who wrote (2180)	8/8/2012 7:46:40 AM
From: bruwin	Respond to of 4720

Hi there Clownbuck, always good to read your posts. One of the reasons I posted that Chart + P/E + EPS was precisely because someone could express the opinion that you did, viz. … ” At 18x earnings, I don't think it is such a bargain?” Because back in 2009 we saw PM with a P/E of 18 and one could possibly have expressed the same following concern … ” I don't think they can grow operating earnings 10% much longer” …. but they managed to do that in the following year, and the following year, etc…, in terms of their ongoing price increase, coupled with their ongoing P/E ratio of 18 to 20. If PM’s business fate was largely reliant on only the US market I would be more inclined to go along with your observation. But these days the world seems a big place, especially when one looks Eastwards. We’ve also seen major offshore expansions taking place with the likes of Coca Cola, etc…, as they search for greater Revenues. Below is a link to a recent article published in February this year, which, IMO, makes interesting reading ….. investorguide.com .... especially the following .... “Like many other multinational corporations exposed to emerging markets, the company sees a continuation of growth in Asia, Eastern Europe, the Middle East and Africa offset by losses in Western Europe, Latin America and Canada” and … ” In the most recent quarter, the company’s sales volume in Asia, its strongest segment, surged 10.5%, led by double-digit growth in Indonesia, Japan and South Korea. Revenue surged 25.7%.” and … ”Meanwhile, China’s lucrative cigarette market remains firmly under the control of the government-owned China National Tobacco. Philip Morris has a distribution pact with China National Tobacco from Altria that allows it to sell its cigarettes in the mainland. In exchange, Philip Morris uses its distribution network to circulate Chinese cigarettes around the Asia Pacific region. The company receives licensing fees from China National Tobacco, but not direct revenue.” The following link also, IMO, provides some interesting insights with regards to Colgate Palmolive (CL) and its presence and business prospects in the East, especially China .... seekingalpha.com Anyway, apart from anything else, exchanging views and putting forward differing opinions makes this search for a Portfolio a very interesting and informative exercise.