“Hope this finds you guys well and with great weather :)
“Can you remind me which company you see as having substantial opportunity in the rapidly expanding Chinese disposable diaper market? I searched briefly this morning and didn't see the articles where you mentioned it specifically (probably my impatience, as I was being interviewed at the time).
“I was interviewed for Schwab's On Investing Magazine this morning - for their Q1 magazine. Specifically they were interested in my experiences using their new Global Trading Platform. I mentioned Fullermoney and you and David several times (no idea if any of that will get into the magazine).
“How was your trip to China?
“Looking forward to seeing you guys in Vermont!!”
Eoin Treacy's view Thank
you for your generous comments and we are also looking forward to meeting you,
as well as a number of other subscribers at next week's Contrary Opinion Forum
in Basin Harbour, Vermont.
I first reviewed a number of diaper companies on returning from a trip to China in October last year (Also see Comment of the Day on October 26th and November 16th 2011. It was the first time I had seen a baby in rural China wearing a disposable diaper and it prompted me to initiate a search for companies that could potentially benefit from the trend.
Hengan International is an S&P Pan Asia dividend aristocrat and yields 1.95%. Its P/E of 30 suggests it is trading on expectations of considerable growth. The share has held a progression of higher reaction lows since January 2011 and a sustained move below HK$70 would be required to question medium-term scope for additional upside.
Kimberly Clark is an S&P500 Dividend Aristocrat, yields 3.44% and completed an 11-year base in March. While currently in the process of unwinding an overbought condition relative to the 200-day MA, a sustained move below it would be required to begin to question medium-term scope for additional upside.
Procter & Gamble is an S&P500 Dividend Aristocrat, yields 3.21% and found support in the region of $60 for the sixth time since 2009 in August. It has since rallied impressively and a sustained move below $65 would be required to question medium-term potential for some additional upside.
Japan's UniCharm is an S&P Pan Asia dividend aristocrat and yields 0.71%. The share has been unwinding an overbought condition relative to the 200-day MA since May but found support in region of the trend mean last week and a sustained move below JPY4100 would be required to question the consistency of the medium-term uptrend.
In India, Godrej Consumer Products broke out of an 18-month range in March and continues to trend consistently higher. A sustained move below INR600 would be required to question medium-term uptrend potential.