The famous seller of bleach -- as well as insecticides, water filters, and bathroom cleaners -- released a statement informing Wall Street that diluted earnings per share will come in between $0.82 and $0.85 for the fourth quarter ending June 30, a reaffirmation of previous predictions. It's also not backing away from its guidance for earnings for the full year of between $2.52 and $2.55 on a diluted basis. If Clorox does indeed achieve the low end of the full-year range, it would still represent a 13% increase in earnings (the company reported $2.23 in 2003). And I like double-digit increases -- except when it comes to negative things like long-term debt, obviously.
I think every portfolio should have a name like Clorox in it; it's important to have a staunch blue chip that is defensive in nature. Other choices along these lines might be Procter & Gamble
As Selena Maranjian once intimated, not every investment slot can be taken up by some high-flying Nasdaq entity like Taser
Don't be afraid of taking on shares in an -- yawn! -- old-economy stock. Don't believe me? Feast your eyes on this five-year chart. Not the straight-up spectacle you were expecting? Sure, there were drops and sideways meanderings along the way, but look at how things ended up. Plus, consider all the dollar-cost-averaging and dividend-reinvestment opportunities.
Clorox will always have a spotty quarter or two. That's a given. But it's got brand power, baby, and I think it is well positioned for the future. Still, for another view, see Dave Marino-Nachison's questions for the company back in February.
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Fool contributor Steven Mallas owns none of the stocks mentioned.