Heck got in this morning for the divvyThis stock is defensive...

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.