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Diageo plc Message Board

  • squidcake squidcake Oct 28, 2008 1:47 PM Flag

    DEO a beneficiary of strong US$

    Since a large amount of their sales are in the U.S., in dollars, they benefit from currency translation when the dollar is strong, as it has been recently.
    Maybe enough benefit to offset the slower sales in the U.S.

    For the first time in a couple of years, this stock has the potential to double in 3-5 years. At $90 that just wasn't the case.
    $6.50 eps in a few years x 16 p/e= $100~ is my goal.

    Another plus, most of their aged inventory was made years ago, when commodity costs were lower...but they get to sell it forward, at higher prices reflective of higher commodity prices, even though it didn't really cost them more to produce what they currently sell. A nice business model.

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109.73+2.23(+2.07%)Oct 2 4:04 PMEDT