Look for Kimberly-Clark to ride the emerging market wave

Revenue for FY2009 will likely decline 2-4%, including a negative currency impact, but investors are looking past that to a projected FY2010 3-5% revenue gain: the FY2010 figure could be low, if Asia and Latin American GDP growth exceeds expectations in FY2010. The First Call FY2009/FY2010 EPS estimates for KMB are $4.25 to $4.94.

Technically, Kimberly's stock chart looks beautiful: a strong uptrend, with only minor, corrective pull-backs, and a stock price that's almost always above the 50-day moving average -- the latter of which indicates institutional investors are continuing to add to their KMB positions. The stock also has gap-up support at $54. There could be a short-term double-top forming at $60, but more than likely this is just resistance at $60: the stock should sale through it on its second try, as it should longer-term resistance at/near $64.

To be sure, KMB's shares are not as cheap as they were in June, but with a P/E of 15, it's still reasonable, given the upside potential.

Stock Analysis: Kimberly-Clark Corp. is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in KMB now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your KMB position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $32.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.