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No. of Recommendations: 0
Tom Gardner said:

That said, there are a number of classic Makers out there and AOL is sitting in another portfolio here. All things to consider. We're less than a month away from that next investment. Any ideas?


How about Procter & Gamble? I'd be very surprised if there were a household in the US, from richest to poorest, that didn't have several P&G products on the shelves. Better still, they rely heavily on brand names that don't obviously tie back to P&G (Tide, Cheer, Pert, Head & Shoulders, Crest, Ivory, Crisco, Pringles) and that are marketed globally. Repeat purchases galore!

I ran the Rule Maker screen on them and came up with a score of 48/60 (and that's with a 0 for enjoyment following their stock :-). The only negative was their cash/debt ratio, which is 0.42 (and got worse from 97 to 98). Moreover, their debt ratio is far better than that of their nearest competitor, Colgate-Palmolive. PG's long-term sales growth rate was kind of slow (4%), but everything else was stellar. Good flow ratio (0.88), and far better positioned than their nearest competitor. PG has delivered years of excellent, steady growth, and makes an excellent RM candidate.
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