Price The Market Part 17
Glen is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Welcome to my journey of pricing the market. I figured I'd start with the S&P500. Away we go!
91. Campbell Soup (NYSE: CPB) is used to hitting their stride this time of year when they discount their canned goods. This could be considered a grandmother stock. It's not really going to surprise you and you can forecast its numbers with reasonable accuracy. The raw costs for Campbell's have gone down while they have been holding strong. Looking at their P/E, all indications show that they are not going to be making that much headway in terms of higher prices in the mid to near future. Below $30, however, Campbell would arguably become a buy. Target $30-$40.
92. Coca-Cola (NYSE: KO) is, as I mentioned before, best of breed. Coca-Cola continues to hold the reigns on the non-alcoholic beverage market much like Santa holds the reins on his reindeer while drinking his Coke, tight. One of the most attractive features of this company is their 25%-30% return on equity. If they raises their price by $.08/Bottle, will you personally throw a fit and no longer enjoy the world's best soda? I didn't think so. They're positioned so strongly throughout the world that no matter how poorly one or two economies are individually faring it will not affect this giant. If you are looking for a long-term return on your money and want to feel safe about it, then do what we do everyday, drink a Coke. With my target set at $70-$75 and the current price just under $70, you should hop into Santa's sleigh with him and crack open this long standing American icon.
93. Coca-Cola Enterprises (NYSE: CCE) begs the question: Why would I own Coca-Cola Enterprises when I could own Coca-Cola? I am neutral on this one for the most part. Their financials are strong and they are about to begin a $1 billion buy back. They are not buying back shares at a bad price and at the present price it's hard to hate this stock. I don't really see a lot of growth on the horizon so any growth in earnings per share is going to come from decreasing the share count. This lack of significant upside isn't that attractive to me. I want growth! Target: $25-$29
94. Colgate-Palmolive (NYSE: CL) is getting close to its peak. I am hesitant to buy this as it looks like they are close to reaching their full potential of their stock value. Their P/E is a little richer than what I would expect given what I perceive the growth profile to be. I have a target price for this company at $80-$95. What's ironic is that I set this target price range a few days ago when it was near the higher end of the range. The holidays caught up with yours truly. I had previously argued: "I would sell it now before you start to see the decline in price with this stock." It appears I am too late. Might as well sit out at this point and see if it can dip lower.
95. Clorox (NYSE: CLX) is one of the few companies that are so cash strong that it is difficult to knock them. They seem to continually overshadow the fact that they have an extremely large debt to asset ratio by covering this with their ability to fund themselves. Looking at them as a whole, they are like watching paint dry. If you are looking for a safe and completely unexciting stock, look no further. Look for them to make a few small strides in the first quarter next year but don’t expect it to stay. Clorox is predicting a strong fiscal year in 2012 for themselves. I am not seeing anything that is going to make them a must buy. Their price already reflects a lot of growth. Target: $64-$70.
That's all for now. If you have any companies that you would like me to price, send them my way! GlobalSpeculation at gmail.com
Glen Bradford holds no positions in any of the companies mentioned.