{"id":710661,"date":"2013-03-26T11:00:15","date_gmt":"2013-03-26T05:30:15","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=710661"},"modified":"2013-03-26T11:00:15","modified_gmt":"2013-03-26T05:30:15","slug":"analysis-colpal-2","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/03\/26\/analysis-colpal-2\/","title":{"rendered":"Analysis: COLPAL"},"content":{"rendered":"

Colgate-Palmolive [stockquote]COLPAL[\/stockquote] investors have had a tough 2013. After hitting an all-time high of Rs.\u00a01580, the stock has slid to Rs.\u00a01250 levels – a whopping 21% drop. Investors have been worried about falling sales in spite of holding prices steady and the imminent entry of P&G into the oral-care market. That said, Colgate holds over 54% of the toothpaste market and has been busy expanding its\u00a0distribution and marketing into rural areas where\u00a0per capita consumption of toothpaste is half that of urban areas.<\/p>\n

\"COLPAL<\/a><\/p>\n

We were a short-term buy<\/strong><\/a>\u00a0back in February. However, the technicals this time are giving mixed signals. Our 4-9-18 model has been flipping between buy and sell all of this month and Aroon <\/a>is stuck in neutral. However, RSI <\/a>levels seem to be headed toward over-sold levels, suggesting a bounce from support at Rs. 1250 levels is possible.<\/p>\n

The stock does pay a fair amount of dividend – Rs. 8\/share was recently announced and given that its in the FMCG space, it is more-or-less recession proof. An extremely low beta of 0.16 provides a certain measure of comfort during volatile times.<\/p>\n

\"COLPAL<\/a><\/p>\n

We would be buyer’s if the stock can hold on to its Rs. 1250 support levels over the next few days. Otherwise the next support is around Rs. 1200. This is a good stock to own for long-term buy-and-hold investors at these levels.<\/p>\n

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