Date updated:07-19-2007
From 7-19-07:
"So you have Nestle (NQB) and Pepsi (PEP) on the prowl. Isn't that the takeaway of the Pepsi-Nestle failed merger? What does it mean? I think it means a really out-of-favor group -- consumer goods -- could get some lightning going for it.
Unfortunately, because of the safety premium, these stocks aren't cheap. Not a one. But two come to mind as natural for acquisition. Here they are along with potential acquirors.

-
CP
Canadian Pac Rail - $46.24
- -1.45%
- $46.94
From Cramer: "Colgate has had Reuben Mark as its head for years, but that's about over, and it could be looking for a home. You add in that Procter & Gamble (PG) needs a deal to ignite growth and wants to do one before the Democrats take over and start nixing everything, and you have a group that could come alive.

-
CLX
Clorox Co - $60.27
- -0.50%
- $60.63
From Cramer: "Clorox is run by a former PEP guy and he is anxious, I believe, for some breakup or results action and he doesn't have the horses right now. A sale could be what he needs, or a breakup.
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A. One of the best of breed oil service
sector stocks would have been a better
bet during this most recent market
correction.
MMR does have strong strength in
ownership; however, the stock price run
up has already been 158% in the last 12
months yet has had a stock price
decrease of 24% in the past 3 months.
Serious consideration to buy MMR must
include being honest with a current PE
that is negative and more than one
analyst has significantly decreased
quarterly earnings estimates . . . which
leads to uncertainty, lack of
consistancy, predictability or stability
of what you are really buying.
The risk does outweigh the reward. . .
meaning it would be as you are phrasing
your question, a speculative play. . .
so how much are you willing to lose vs
how much are you hoping/anticipating to
gain?
Further, should you go with MMR, might
want to look at the charts for entry
point for partial position, followed by
adding partial position(s) with the
consideration of placing and using
mental stops to protect
investment entry points . . . Then
consider how much are you anticipating
to gain on the upside in anticipation to
taking a partial or total profit. . .
Thought being, keep a keen eye on MMR if
you put it into play and have your
finger on the trigger to sell in case
the price goes south (below support) or
hits the exit number (for profit).
In short, I have no personal position as
to why there would be any reason to dive
into MMR whole hog with the belief it
will be easy money. . . and that is
likely the real hard information or
supporting documentation you are hoping
to secure to feel confident in making a
more than certain profit with the
probability of low risk.
A. The only one I own : SLX,
too hard pick a winner out all of them
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