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No. of Recommendations: 0

I used your numbers and put them in the RM essentials spreadsheet. Here's how they came out:

1. Dominant Brand - Many of them. 1 Point.

2. Repeat Purchase business - Oh, yeah. 1 Point.

3. Convenience - P&G wins again. 1 Point.

4. Expanding Possibilities - This is tough, but since P&G has some of the best brand managers around, I'll give them the benefit of the doubt. 1 Point.

5. Your familiarity and interest - This will vary, but I'll wager that most on this board are at least familiar with P&G - 1 Point.

Well, so far, we're 5 for 5; but, here's where the road gets rough for P&G, according to your numbers:

6. Sales Growth - RM's should be over 10%. P&G was 2.6%. 0 Points.

7. Gross Margins >50% - P&G is 44.4%. 0 Points.

8. Net Margins >7% - Cha-ching! 9.9%. 1 Point.

9. Cash/Debt ratio >1.5 - 0.31. 0 Points.

10. Fool Flow Ratio <1.25 - 1.06. 1 Point.

11. Cash King Margin >10% - 7.7%. 0 Points.

I get 7/11. It's clear from this brief analysis that P&G does very well in the qualitative areas while failing in most of the quantitative ones. If you really want to analyze this further, you could fill out a RM ranker sheet and get a better picture of where the company stands in Rule Makerdom. My guess is not very well.

Hope this helps.

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