22 cent divvy n one of the top defensive plays

Heck got in this morning for the divvy

This stock is defensive and hence much much less volatile and in a more or less certain trading range

Minimum itll go into the low $8.00 range the chart says, so its a pretty good stock for 'dividend stripping'

The fundamentals on this stock anyways are IMPECCABLE

Other than a little high debt, look at ROE n ROIC or ROA!

Its got debt, but the returns on this debt are excellent! This is shown by a high return on capital invested (ROIC) or above average Returns on Assets (ROA). Return on Equity is also very very good, but bcoz theres alot of debt ROIC n ROA are a better measure of the returns on debt + the equity.

Strong brand names too. A typical style buffet company other than the debt part.

But u cant go past the returns on that debt - theyre obviously putting it to very good use. Return on DEBT+EQUITY thus gives a very good reading.

ROE is a whopping 32%

The more important ROIC (return on capital) is excellent at 15%

margins are very good - 28% operating margin and 13% net profit margin is great.

Like I said, only drawback to me is the DEBT looking at fundamentals

Very strong brands and recession proof product

Coke TO also a question mark

But given all this , i cant really see them falling below $8.00 unless theres a massive US collapse again maybe

Coca-cola balance sheet is very similar, so the new company wont be too much different , just BIGGER!

So its worth to divvy strip it.

Got in this morning on the drop for a small parcel.