Yeah... and MILO is in every household.. biggest market for MILO now is the Foreign Workers...

And it will (almost) never die. Maggi, Nescafe, Milo, Nestum, these 4 brands alone is a good reason to buy.

U can have Power Root, Ah Huat etc etc etc coming up, but no one can replace Nescafe.

With about 10% growth, this year u have DY 3.5%, next year 3.8%, next next year 4.2%, and so on. What's not to like?

This post has been edited by Pink Spider: Apr 21 2014, 09:30 AM

U no longer drink Milo?

Starbucks VVIP spotted

Reflecting on my rookie investing mindset ....

Yes, Nestle is an attractive company to invest in, good fundamental, etc.

But at the moment, it is too expensive, not just the actual price but the high PE etc.

Current price is well above its intrinsic value (yes, different ways to calculate intrinsic value and which one is reliable?) .

My view is, even with market leaders or good solid fundamental companies, don't get in if the price is not right. Nestle has been in my watch list for at least 3 years now. With its high price now, the upside is less promising than some other companies.

My 2 cents.

Yes, I agree with u in a sense, current entry price is not attractive.

But, if u were to hold for long-term, the fundamentals will eventually catch up.

What if it never drops? U will miss the boat forever (well, u already missed for 3 years).

This post has been edited by Pink Spider: Apr 21 2014, 09:41 AM

Ha ha. I knew it that someone would be replying saying that I have missed 3 years of Nestle return.

In return, there are some companies doing better than Nestle though not as well known as Nestle (with different company fundamental).

My take is, if the price does not drop to my "wish" price, then Nestle will be more than happy not to have my name in their shareholder list! Ha.

Cheerio.

This post has been edited by plumberly: Apr 21 2014, 12:30 PM

And the fact that u see its long term trend, even in a market crash it does not correct much. Pretty safe to treat it as a "bond substitute" to reduce my stock portfolio volatility.

Okay, I rest my case.

If we use unker gark's formula...
growth 10%; DY 3.5%
then PE should be 13.5 or less.
Given that Nestle is ultra defensive, I would relax the PE requirement...
Let's say PE = 20

Resilient consumer spending boosts Nestle's 1Q revenue

http://www.theedgemalaysia.com/business-ne...1q-revenue.html

did anyone heard that if the water problem still go on for next month in KV, Nestle would incur rm15mil loss daily & there's would be staff retrenchment

So many "Bill Ackman" pulling down Nestle

Nestle to increase Milo’s price by 5% to 7%

don't think will affect consumers.

Not just 3 years return which is minor compare to the capital gains...3 years ago Nestle was at RM45 and now RM68.50... 15% annual compound rate of increase.

WTF

buy the shares, get 5-7% growth?

haha... and to offset the price increment u pay to drink milo at mamak.. hahah

btw, i too think that the price is too expensive to enter. like buying 1 lot of nestle share = 3 lots of shares from other company.

Price already near 5y high, should hv bough when price around rm45

I dumped already, moving the money elsewhere. Total gain (price + divvy) of 9%++ in less than 1 year.

Good for you bro

Anyway look on the bright side, I "indirectly own" Nestle by various Amanah Saham Scheme that I invested

This post has been edited by davinz18: Apr 25 2014, 03:13 PM