Colgate Palmolive (CL), together with its subsidiaries, engages in the manufacture and marketing of consumer products worldwide. It operates in two segments, Oral, Personal, and Home Care; and Pet Nutrition. The Oral, Personal, and Home Care segment offers toothpaste, toothbrushes, mouth rinses, dental floss, and pharmaceutical products for dentists and other oral health professionals; shower gels, shampoos, conditioners, deodorants and antiperspirants, and liquid hand soaps; and dishwashing liquids, household cleaners, oil soaps, and fabric conditioners.
The Pet Nutrition segment produces pet nutrition products for dogs and cats. The company sells its products to wholesale and retail distributors, and to veterinarians and specialty pet retailers. Colgate-Palmolive was founded in 1806 and is headquartered in New York, New York.
Colgate is a relatively conservative issue that has held up fairly well in the recent market meltdown due to its strong return on equity and positive earnings growth. The company recently announced excellent worldwide sales and unit volume growth, together with higher than expected earnings growth for latest quarter.
Worldwide sales grew 16.5 percent to $3,964.8 million and unit volume grew 5 percent. Global pricing increased 4.5 percent and foreign exchange added 7 percent. The very strong top-line growth was supported by an 18 percent increase in worldwide advertising spending to an all-time record level.
The stock is in an Elliott Wave-4 buy formation, projecting gains into the $84 per share by the end of October. Colgate has a very liquid options market that currently extend out to January of 2010 allowing the options strategist more than enough time to profit from this potential bullish opportunity.
Figure 1: Daily Elliott Wave-4 Buy Pattern for Colgate Palmolive Corporation
(Source: Profit Source)
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Jeff Neal
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