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Friday, 19 March 2010

Searching for good quality stocks in the Consumer Sector

Let us have a look at some consumer stocks.  I have selected these stocks based on their doubling in their earnings over the 10 year period of 1999 to 2009.

Here are these stocks:

Ajinomoto
BAT
Bonia
DLady
F&N
Mamee
Nestle
Padini
PPB
QL
UMW

Subjecting the above to a further screening criteria (that is, no decline of >5% in earnings in 2 out of these 10 years), the following stocks are discarded from this list:

Ajinomoto
Mamee
UMW

Also, BAT is also discarded as the earnings growth the last 5 years had been negligible or anaemic at best.

This leaves the following stocks, with history of durable competitive advantage, in this list for further analysis.

Ajinomoto
BAT
Bonia
DLady
F&N
Mamee
Nestle
Padini
PPB
QL
UMW
Which 1 or 2 of the above stocks would you wish to own for the long term?

Time for QVM analysis when time permits..




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1 comment:

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