Thursday, July 17, 2014

Whirlpool WHR - added to my watch list

I added Whirlpool WHR to my watch list because the stock is trading at 139.23, which is in the middle of 52wk Range:118.92 - 160.01.

I really like this brand. All my major appliances in my house are Whirlpool. Out of all brands Whirlpool usually has one of the best ratings. My most recent purchase is my dishwasher. I replaced my old Whirlpool with a new one. Everytime I use it, I sing a song of praise to Whirpool. It's very quiet, fits twice the dishes than the old one and cleans very good.

Dividend yield is not very high 2.20%, but the company pays dividends for many years and slowly increase it.

PE 15.37.  1 year Target is $172. But if you look into historical prices, you will notice how prices vary.

Whirlpool buys 60% of struggling Italian brand Indesit (read here), and because of this investment Moody downgrades Whirlpool  due to increasing debts after this purchase. But it can be a two way road. If the Italian economy is struggling at this moment, I would think Whirlpool might get a good deal - like discounted price for business? Stakes in Italian brand can help Whirpool to enter and get more influence in European markets.

The Value Investor at Seeking Alpha is in doubt about Whirlpool here

TheStreet rated WHR as a Buy here.


What do you think about this stock?




5 comments:

  1. Hi HHWG,

    Nice find. It's always good finding stocks trading at a discount price. Unfortunately there are not many of those right now.

    In The Netherlands, Miele is a stronger brand than Whirlpool. Besides that, with just 3 years of dividend growth, that's not good enough for my portfolio right now, as I'm building the fundament on blue chip stocks.

    Good to see you mentioned TheStreet by the way. Last week I visited that website, but it didn't seem very credible. Do you have any info on that, as I'm unfamiliar with most US websites on the subject.

    Best wishes.
    DfS

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  2. Hello DFS,
    thanks for stopping buy. Yes, I usually read articles but learning from my past experience, I do not trust them. As I always say I mostly do my own analysis. You will notice when stock is falling, all sites will say this stock is not good, and opposite. So if you would follow, you would always buy stocks at their highest when everybody buying. I have my watch list and if I know the stock is good or promising, I buy. If I am not sure I might buy just small amount of shares. Or sometimes I put stock on my watch list and just watch and watch and watch... :)

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  3. I really like WHR products and the stock price is down over 11% in the last six months. I would consider waiting to see what happens but I do agree this seems like a bargain. I am overweight cyclical consumer goods and services and don't have and financial, energy or utility stocks. I am hoping to change that within the next month or so.

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