Sunday, September 19, 2010
The biggest in the world
Everybody has heard of Whirlpool (NYSE: WHR). And after they adopted the Maytag man in 2006, Whirlpool became the largest appliance maker in the world. With $20 billion in annual revenues, whirlpool is trading at just a 10.x multiple, and is an extreme value. The stock is down 24% over the past two months amid lackluster sales. The reality is, appliances break. Efficiencies increase. Styles change. People upgrade. You can't replace a refrigerator with an online version, you have to buy a new refrigerator; which is why Whirlpool isn't going away anytime soon. So collect your quarterly dividend (a 2.3x % current yield), and bide your time until Whirlpool rallies (again).
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