I like GIS and pretty much agree with your price target, but I think it is a "sell in May and go away" at this time. A cliché, yes, but I think they are ahead of themselves and more likely to see 45 before heading to 54.
Thanks for the affirmation. The dividend plus growth that betters inflation is what I am looking for, and I like balance sheets with minimal debt and intangibles. That same store sales report looked a little worse than expected, but seems to be built in to the price for now. I was thinking the 20% dividend increase might have indicated a better report, but more likely they just figured paying .05 of it is easily doable due to the dividend already prepaid in Dec.
Agree. I sold KMB at 87 in Q4 and bought GIS and HCLP the same week. Both have done well but I am thinking GIS and CLX are ahead of themselves. CLX is a LTCG so I don't mind selling, but I don't what I'd exchange it for.