What if you could buy stock of a company that was founded in 1837 and is in business worldwide in Beauty Care, Grooming, Baby Care, Feminine Care and Baby Care?
It had revenue of more than 83 billion USD in 2014. And if you are reading this, high chances are that you are their customer in some way or other.
This company is Proctor & Gamble (PG.N).
Here is a brief history. William Procter, a candle maker, and James Gamble, a soap maker, both born in the United Kingdom, emigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris. Alexander Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was created. The company is in operation for 178 years now !
How was their stock performance in last 1 year? In last 1 year, P&G has increased by less than 1%. Whereas S&P500 has gone up by 13%+. That is, it has significantly under performed the market.
In Superior Profit Way, when we are looking for stocks to invest in, we look for precisely such companies. Solid companies which underperformed the market. We wait for such stocks to fall at Low Pendulum level - meaning falling "significantly". We can see that from the Daily chart below where the Pendulum Candle color turned red. Indicating that the stock is "low enough" for us to keep tracking and see if there is a potential buy point.
Now, we don't go and catch a falling knife. We want the stock to show signs of moving up after a sharp decline. In the Pendulum Candle color in above chart, the change of color from red to yellow shows that it may be getting ready to go up.
We like to get that confirmed from Hop On template. Which tells us if we can go Long (buy the Stock or buy Call Options) - both for Swing Trading as well as for Long Term Investment.
Here is the what the Hop On template tells us as of 15th May 2015.
Well, so we have all signals go for taking a Long position.
What about looking at some other fundamental information of the company?
Being in Consumer Staples Sector and Housing Products Industry group, the company's business is stable. That is reflected in the stock's Earning Per Share (EPS) and Revenue history and projections.
We could probably add more pieces of information. However, in our view, keeping it simple makes it easier for investors to grab an opportunity without too much delay.
"Feel Great Every Single Day" - as P&G says !
And today, it does feel like a good opportunity to buy a solid company at a discounted price. Doesn't it?
Citizen of Main Street.