Friday, September 4, 2015

Opportunities


As I submit my weekly order for next Tuesday (since Monday is a holiday), I see quite a few opportunites. 

Ever since I implemented my weekly investment plan (to bulk up my smaller positions) I've been ignoring the market noise. But today, I had to check it due to deadline to submit the order. 

One candidate which has been in my watchlist since the beginning is Kimberly Clark KMB. I believe it is trading close to fair value. 

The P/E is close to 60 which is a bit misleading since this is due to a one time charge of around 544 million. Lucky I use both forward and current P/E on my spreadsheet. Moreover, I checked its investor relation website. 

KMB is has long a healthy dividend growth history. It's one of those companies you want in your portfolio. Its yield is quite reasonable now. The per year dividend growth rate range is 5-10% over the last 5 years. 

Let's see if I get lucky today. 
D4s

2 comments:

  1. I think you are right on KMB. I'd like to see it about 5% lower but it's really not too bad here in my opinion. So many choices, so little free capital. :)

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    1. Adam, I agree. 5% lower is much better. The only metric to monitor is KMB debt to equity and debt to capital levels which are higher than the rest of the consumer companies. Historically, these values are quite high for them. Otherwise, not a bad company at all.
      D4s

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