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MarketFoolery

One Spicy Stock

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 29 March 2016

⏱️ 23 minutes

🧾️ Download transcript

Summary

McCormick serves up another strong quarter, but is the stock’s valuation getting too spicy? Plus we discuss potential catalysts for LinkedIn and Walt Disney becoming the #1 shorted stock in the DJIA. To win your own investing library, go to Podcasts.Fool.com.

Transcript

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0:00.0

It's Tuesday, March 29th.

0:03.3

Welcome to Market.

0:04.3

I'm Chris Hill joining me in studio today for a million dollar portfolio, Jason Moser.

0:09.4

Back in the saddle.

0:10.4

Back in the saddle.

0:11.4

I had to get you back in here because of what we're going to be talking about.

0:15.0

We'll dip it into the full mail bag, but let's start with a company that I know is near and dear to your heart,

0:21.0

and that's McCormick. Sure. The spice maker hitting a new high today.

0:25.2

First quarter profits, much higher than expected. And the stock hitting a new high, the stock's only up about 1.5%.

0:35.4

I want to get to the valuation of the stock in a minute, but first, you looked at the quarter. What stood out to you?

0:43.4

Yeah, I mean, I guess what stood out to me is that nothing really stands out.

0:46.2

I mean, this is more of just kind of like the same old, same old for this company and that's really good.

0:51.2

I mean, that's what investors want is a company with a

0:55.0

wonderful brand in a market that will really never disappear.

1:00.0

It's always going to generate repeat sales and they're always going to have a wonderful position in virtually every grocery store you ever find their products because their products are good and they have such a vast array.

1:14.2

And I mean I've loved this company as a kid just when my mom was teaching me at a cook.

1:20.9

I mean our spice cabinet and I'm sure yours at home and everyone else

1:23.2

around the country is full of McCormick spices whether it's some sort of generic or McCormick or

1:29.4

higher-end brand. McCormick just has a real, a really wonderful position in this market that is going

1:38.2

to be just extremely difficult to ever really overcome.

1:42.0

And I think a couple of reasons

1:43.2

for that number one the brand in reputation they've built throughout time I mean there is

...

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