Monday, September 11, 2006

Trade Ideas: CL

A solid consumer staple for the months ahead, and the most frequent stock to appear on my Trade Ideas scan at 31 times. Colgate-Palmolive (CL) is well placed to push through $62.45 resistance. A move to $64 would trigger an ascending triple top breakout, bringing into range its point-n-figure chart target of $73. More importantly, it would complete a 6-year cup-and-handle pattern, dating back to 2000 highs of $63.45. Jim Cramer was another to promote this stock earlier in the month (you can decide if this is a good, or bad thing!). The 2.1% yield is an added bonus.

Colgate-Palmolive Company engages in the manufacture and marketing of consumer products worldwide. The company operates through two segments, Oral, Personal, and Home Care; and Pet Nutrition. Oral, Personal, and Home Care segment provides oral care products, which include toothpaste, toothbrushes, mouth rinses, dental floss, and pharmaceutical products; personal care products that consist of shower gels, shampoos, conditioners, deodorants, and antiperspirants, as well as liquid hand soaps; and home care products, including dishwashing liquids, household cleaners, oil soaps, and fabric conditioners. Pet Nutrition segment provides pet nutrition products for dogs and cats.

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