Colgate-Palmolive is one assertive-defensive that's wasted no time demonstrating its assertive component.
I'm reiterating my Buy rating for Colgate-Palmolive (NYSE: CL), first recommended on April 13, 2009 at a price of $58.49. Shares are up a cool 24% since that time.
And, the hybrid business model story remains intact, although CL is not as cheap as it was in April. A restructuring has left CL lean and poised for the recovery in key markets, which should drive impressive 7-10% earnings growth in F2009 and F2010, and beyond.
And look for CL to concentrate on faster-growing markets, which should further support shares. The First Call FY2009/FY2010 EPS estimates for CL are $4.27 to $4.76.
Stock Analysis: Colgate-Palmolive is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in CL now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your CL position before October 2009. Sell/Stop Loss if you were to buy shares in this company: $41.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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