Thursday, November 13, 2014

Watchlist update

I've been eyeing the staples sector for possible buys. I am having trouble finding good value in the Industrial sector and am willing to wait. Crude oil has fallen even more and I predict further drop in prices for oil majors. I am going to wait until the oil companies prices fall below what I paid several weeks ago during their lows.


SJM has come up as an interesting pick

  • 25% debt/cap
  • PE bit below historical average
  • Strong earnings even during recessions
  • Strong dividend history
  • Moderately good yield 2.6%
  • BBB+ credit rating


GIS also looks good as well.
  • 39% debt/cap
  • PE a bit higher than average
  • Strong earnings even during 2008-2009
  • Strong dividend history
  • Moderately good yield 3.2%
  • BBB+ credit rating

Kellogg is also an interesting play but I feel that the debt is too high at 53%. K is currently below fair value so I think it is a good value pick. SJM has the highest growth of the three.



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