Watching PG

Drawn into the stream
Of undefined illusion
Those diamond dreams
They can't disguise the truth
--Level 42

The heavy action in Procter & Gamble (PG) has caught my eye. Consumer discretionary in general has been outperforming the consumer staples category of which PG is a member.

That softness now finds PG touching its multi-year uptrend line.

Does that make the shares a value play? Maybe on a relative basis. And its 3.7% yield seems somewhat attractive in a low rate world.

But on an absolute basis, my cash flow work suggests the stock needs to come down from its current $180ish billion market cap...by a lot. My interest increases with a price closer to $50.

no positions