Procter & Gamble (PG)

Had a few issues over the last little while. Large companies like this were all highlighted as to their ability to grow in China. China has been a lot more difficult to deal with than people thought. This has hurt the stock a little. All in all, it is a great company with great products and is not trading at a very high multiple. Global growth will help this company. Made a few changes, which will help them. Expecting better top line growth.

His model prices $78, a 7% downside. This is a large cap stock and is going to have a beta of 1, which means that if the market is going to be up 20%, this one will probably be up 20%. Doesn’t particularly like this one. There are other possibilities out there, but you are not going to get hurt either.

Such a strong brand globally and a very well run company. It is that value category where you have to pay for what you get in these companies. They haven’t had anything holding them back or causing concerns so there is no discount in the valuation.

(Market Call Minute.) Continuing to benefit from growth in emerging markets.

(Market Call Minute) Terrific company but valuation is too high by 20%.

Well-run company. Likes the multi-national aspect to it. Has a nice tailwind because of the depreciation of the US$. The only drawback is that it is a little bit rich right now and is trading at about 18X current. Not a super duper fast grower. Have a tendency to make a lot of acquisitions to maintain their growth. Good dividend yield.

Procter & Gamble (PG-N) or diversify with an ETF? In a lot of ways, mutual funds or ETFs are intended to give you diversification with smaller amounts of money and low costs. Until you build up a portfolio of some size, and can diversify in terms of numbers of positions, he would probably go with ETFs or mutual funds. Regarding Procter & Gamble, this kind of stock has befuddled him. In the last 6-8 months, these kinds of stocks are coming down in price because they were pushing up against their higher end on an evaluation basis.

We all need the products they are producing so they find it easy to raise prices on these products. They are moving more into emerging markets and that’s where there is growth.

Doesn’t see it going much lower. With a 1-3 year time horizon it is a good name. Change of CEO has been well received by the street. They can really look at the cost containment and sell off some non-core assets. $70 would be a good entry point.

Good entry point. On any pullback you could buy the stock. Continues to be a global brand leader. Dividend extremely safe. High cash flow growth. Going to benefit on a global recovery. There aren’t a lot of catalysts to move this stock. You can buy it and close your eyes.

Stable business, great brands. Comes back to the valuation. Doesn’t want to pay this much for a company. Doesn’t see enough multiple expansion in this one.

You do well if you bought it when it fell a bit. Did well by up-selling consumers in the rest of the world. It re invested itself by bringing out lower cost products. Buy while it is on sale. Long term position.

(Market Call Minute.) Has run a little bit so he wouldn’t buy it here. Try to get it around the $65 range. Not a great grower.