|ADP||AUTOMATIC DATA PROCCESSING INC|
|BDX||BECTON DICKINSON AND COMPANY|
|CHD||CHURCH AND DWIGHT CO INC|
|CL||COLGATE PALMOLIVE CO|
|COST||COSTCO WHOLESALE CORP|
|D||DOMINION RESOURCES INC|
|GIS||GENERAL MILLS INC|
|HD||HOME DEPOT INC|
|HRL||HORMEL FOODS CORPORATION|
|SJM||JM SMUCKER COMPANY|
|MKC||MCCORMICK AND CO|
|PG||PROCTER AND GAMBLE CO|
|ROST||ROSS STORES INC|
|UTX||UNITED TECHNOLOGIES CORPORATION|
|DIS||WALT DISNEY CO|
|YUM||YUM BRANDS INC|
I've been watching these stocks for a couple of years, waiting. I have buy prices set for all of them, well below where they trade today. That said, I wouldn't buy any of these today, and if I owned any of them, I'd definitely trim them down to a 2/3 position in the portfolio. Here are a couple of examples:
P&G: This chart shows the PE ratio over the past 15 years. It's nearing its six year high point today. Time to sell.
Costco: The PE today is getting close to 25. It's only been higher in the past 15 years in 2001. Sell, sell, sell.
Colgate Palmolive: The PE now reaching levels not seen since 2001. Great company, time to sell.
In summary, I can take a pretty dispassionate view of these stocks because I don't own them. I'm just watching (that sounds weird). I haven't fallen "in love" with these names like many do after owning them over long periods. For example, I have a strong affection for Walgreens because its up over 85% since I bought it, but it too is getting into sell territory, and in fact, I've trimmed it back to a full position in the portfolio.
If you own any of the stocks on the watch list above, take a close look at their current valuation, and consider trimming them down. Use the proceed to buy something cheaper!