|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
DECEMBER 13, 2004
By Gene G. Marcial Brighter Smile At Colgate?  Heavy outlays for ads, plus a jump in raw-material and fuel costs -- and pricing pressure from rivals -- forced Colgate-Palmolive (CL
) to warn the Street in September that 2004 profits wouldn't meet forecasts. There was a scramble to bail out of the stock, driving it down from 55 to 43 in a matter of days. But not everyone is fleeing: It's now at 46 -- "a good entry point to invest in one of the world's foremost brands," says Sarat Sethi of investment firm Douglas C. Lane & Associates, which has bought shares.
Colgate toothpaste, soaps, and pet food are sold in 200 lands. The stock has traded at a premium vs. its peers for years, says Sethi, and this chance to buy comes as Colgate is spending heavily on ads. He expects Colgate will announce a restructuring this month as part of its profit-lifting plan. He sees the stock at 55 to 60 in a year. He expects 2004 earnings to drop to $2.41 a share on sales of $10.5 billion, down from 2003's $2.46 on $9.9 billion -- but that should jump to $2.67 on $11.1 billion in 2005 and to $2.95 on $11.8 billion in 2006. William Chappell of SunTrust Robinson Humphrey, who still rates Colgate a buy, says it "will be rewarding to patient investors." Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  See Gene on Fridays at 1:20 p.m. EST on CNNfn's The Money Gang. Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version
