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On the SPOT blog (03/10/2022) [P..]

Updated: Aug 31, 2022

Stocks and Oil prices seem to be playing seesaw as the impact of sanctions on Russia on the world economy uncovers itself. It is anticipated that European economy will see strong ripple effects while US economy will see some impact (we already saw the gas prices). Supply chain issues are only getting worse.

No wonder one of the top brands in the world appeared in the discounted territory today. I'm talking about Procter & Gamble (ticker PG). The global consumer products company that addresses diverse product lines such as Home/Family/Health care, Beauty, Grooming etc. This company makes such well known products (e.g. Gillette, Crest, Charmin, Tide, Dawn, Gain, Olay, Head & Shoulders, Swiffer, Mr. Clean, Pampers etc.) that I couldn't ignore checking it out to determine if I should own some piece of it if it really is discounted. Apparently, this company's cleaning products demand increased due to the pandemic. They did beat earnings and revenue estimates in last reported quarter and provided +ve guidance for 2022. PG has strong free cash flow, pays dividend and has share buyback program.Their balance sheet appears to be okay with > $10B of cash/cash equivalents. Debt > $22B and total debt/capital ratio appears to be < 45%. Management seems to have a track record of cost savings and improving productivity. So far so good. I wonder why is it discounted then.

You must have guessed it. Inflation, commodity costs, transportation costs might all impact the margins -vely. PG competes with the likes of Colgate-Palmolive, Clorox etc. so pricing pressure exists for related products. Besides, this is a very global player so susceptible to macro-economic environment and currency fluctuations. With so many potential headwinds, PE appears to be slightly higher (albeit < 30). PEG is also ~4. It makes sense that the stock entered the discounted zone. So, lets check the gScores to see if it is time to start building a position in this company.

PG's overall gScore is 0.6. Below are its micro-gScores:





Bollinger bands












Options data


Analysts' recommendations


Sentiment score


  • Price micro-gScore is -ve. The number of consecutive days of falling price is in bottom quantile. Current price appears to be in the middle quantile of its 52-week range

  • RSI is showing below average level and falling

  • Current price is near lower Bollinger band

  • MACD generated sell signal when price was ~$160 and the number of days in this -ve trend is in top quantile

  • KF is showing current price to be well below the "filtered" average

  • OLS model is a good fit for this stock's chart. Both 1-year and 5-year Least Squares line have +ve slope. Current price also appears to be well below both lines. I'm obviously happy to see that as I can use dollar cost averaging to play safe

  • MFI is showing below average level and falling

  • Stochastic is showing oversold level

  • Options data looks pretty good with current price as reference. Short ratio < 1.5 and calls/puts action appears to be bullish

  • Analysts' recommendations are looking generally good

  • Sentiment score is somewhat +ve

Interesting charts given that stocks are seesawing. I'd like to own this stock but it appears somewhat pricey for my fundamental analysis filter. Then again, it is a strong brand so might deserve a premium but I didn't see a high percentage (>90%) of institutional ownership so will remain cautious given the macro-economic uncertainties. I'll wait for the current bleed to stop and then might start buying very small quantities over the next several months. You would obviously decide for yourself.

Here are the charts for this stock generated by Gammath™ SPOT for easy reference.

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