Clorox (CLX) Has Initiatives, Growth Potential to Make it a Continual Winner - Cramer
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According to Jim Cramer, Clorox (NYSE: CLX) is the one to watch going into the fourth quarter of 2010.
Clorox, with brands like Kingsford charcoal, Hidden Valley Ranch and Bert's Bees, made a straight-forward presentation to its investors, outlining clean and clear plans to make their wares more relevant to customers.
Cramer notes that CLX products are generally in the top one or two in 90% of the categories in which they participate. Sales growth of 2% this year came on a 10-year gross margin high of 45%.
Management is more focused on a health and wellness theme, divesting non-core assets like their auto care products. One example is promoting Hidden Valley Ranch as a way for kids to eat more veggies.
Another area of focus is making Kingsford charcoal more appealing for year round use. Clorox also introduced grooves to make the product easier to light, while reducing shipping weight at the same time.
With a 3.3% dividend yield, 10% long-term growth rate, and solid margins, Colorox shouldn't be kept "hidden" from your portfolio.
Shares of Clorox are trading about 0.75% higher pre-market today.
Clorox, with brands like Kingsford charcoal, Hidden Valley Ranch and Bert's Bees, made a straight-forward presentation to its investors, outlining clean and clear plans to make their wares more relevant to customers.
Cramer notes that CLX products are generally in the top one or two in 90% of the categories in which they participate. Sales growth of 2% this year came on a 10-year gross margin high of 45%.
Management is more focused on a health and wellness theme, divesting non-core assets like their auto care products. One example is promoting Hidden Valley Ranch as a way for kids to eat more veggies.
Another area of focus is making Kingsford charcoal more appealing for year round use. Clorox also introduced grooves to make the product easier to light, while reducing shipping weight at the same time.
With a 3.3% dividend yield, 10% long-term growth rate, and solid margins, Colorox shouldn't be kept "hidden" from your portfolio.
Shares of Clorox are trading about 0.75% higher pre-market today.
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