All investors should study the Personal & Household Products Industry for top stock picks. The emerging economic climate of 2008 is likely to see new stock winners emerging from this group of corporations. Consumers all over the world are expected to move tight budgets towards products that offer best values for money. Wasteful distribution margins are sure to be questioned.
Here is a company with an especially cost-effective system of reaching consumers. It uses a networking business model for most of its present profits. However, it also has a preferential system for people who buy in bulk. Operations are supported by contract manufacturing. The latter also has a base in the enormous market of China. The company deals with approximately 200,000 regular customers. Their business extends from North America to the Pacific Rim. The company has the potential to reach out to other emerging markets in future. The stock therefore represents an engaging balance between present value and future potential.
There are a slew of reasons for investors to back this stock within the Personal & Household Products Industry. The Price to Equity Ratio over the past four quarters has averaged less than 11 against almost 21 for the industry. Sales have grown during the past five years at more than twice the industry rate. The management has an impressive record of 78.49 as average Return on Equity during the past five years. Inventory Turnover on a Trailing Twelve Months basis is 12.32 against just 5.22 for the industry.
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