The Chart du Jour

A Better Candidate for the "Nonsensical Nine"

February 13, 2001

By, Barclay T. Leib


Chart constructed using Advanced GET End-of-Day

As readers of this site know, one of the few stocks we have favored in recent months has been Campbell's Soup. We have done so both because of its chart pattern and the prospect that someday soon this venerable Camden-NJ-based consumer food stock is going to get sold.

A week ago, Bloomberg columnist John Dorfman poked fun at Campbell's, citing it as one of his "Nonsensical Nine" for the year 2001, and berating its high debt-equity ratio of 23-1. Dorfman had previously bashed Campbell's in an article entitled "Five Stocks that Would Make Benjamin Graham Choke," only to see the stock rally 20% in his face. Perhaps it is Dorfman who should be choking.

Now, don't get us wrong. We are the first to admit that Campbell's has way too much debt. That's part of the reason we think the still large family holders of this stock will opt to sell out instead of holding on. We also would like to ask Mr. Dorfman, even with all this debt, which is the better buy? Campbell's Soup trading at 19 times trailing earnings, or another consumer food company Coca-Cola (pictured above) currently trading at 69 times trailing earnings? With Coke pretty much going the way of MacDonald's in popularity, but still sporting such a lofty P/E, maybe Dorfman should have named Coca-Cola as one of his "Nonsensical Nine" in lieu of Campbell's.

While we are on the subject, technically we see the stock of Coca-Cola (KO) likely to fail under its 200-day moving average (currently rolling over just above the recent trading range), and then potentially head toward a Fibonacci objective just under $32 a share.

For immediate web-based access to our latest subscriber-only January 21th analysis, please support Sand Spring Advisors and purchase a quarterly subscription below. Our latest work will be accessible on the final page of the order process. A user-id and password for web access to all past and future articles will follow by e-mail.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright © 2000 by Sand Spring Advisors, LLC, Morristown, NJ