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Monday,
October 20, 2008
(Cont'd from
above)...
Take a
Tupperware Brands Corporation
(TUP)
or a
Newell Rubbermaid Inc. (NWL)...
Both companies spend
a lot of money on
resin... think
plastic... which is
made from petroleum.
But they've got too
much economic
sensitivity. They
may benefit from
lower raw costs, but
this hideous economy
will also mean lower
sales. And, by the
way, even though the
market was up 400,
the economy is still
hideous.
That's why we want a
play on cheaper oil,
that's immunized
against the
recession...
And what do we
want?... We want
Becton Dickinson & Co. (BDX)...
The Bottom Line!:
Becton Dickinson & Co. (BDX) is a play on
cheaper oil, even if
it won't benefit
from lower prices
for another three to
five months... But
you've got to think
out more than three
months. This is a
great defensive,
recession stock,
with a cheaper resin
kick that's not
baked into the
numbers. Understand
that, if you think
we're about to have
an incredible
acceleration in
world growth,
because everything's
great again, this is
the wrong stock. If
you think like I do,
that we're in for a
very bumpy ride, BDX
is for you.
Read Jim's next Segment
here
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