Colgate-Palmolive: Stability Amid Volatility

Colgate-Palmolive: Stability Amid Volatility

HEFEI, CHINA - APRIL 18: (CHINA OUT) A shop assistant removes Colgate toothpaste from the shelves of ... [+] a supermarket on April 18, 2005 in Hefei of Anhui Province, China. U. S researchers have warned that Colgate toothpaste could produce the cancer causing chloroform gas when it is mixed with water. According to Peter Vikesland, the assistant professor in civil and environmental engineering of the Virginia Polytechnic Institute, Triclosan, a chemical found in the toothpaste could react with the chlorine in tap water to produce chloroform gas, which can cause depression, liver problems and, in some cases, cancer if inhaled in large enough quantities. The General Administration of Quality Supervision, Inspection and Quarantine of China said it was closely watching the matter. Colgate said it held almost one-third of China's toothpaste market. (Photo by China Photos/Getty Images) I first made Colgate-Palmolive (CL) a Long Idea in March 2018. Since then, the stock is up 12% compared to a 48% gain for the S&P 500. Despite its underperformance, the stock still offers investors favorable risk/reward, especially amid the current market volatility. I think the stock is worth at least $104/share today – a 35%+ upside. Strong Global Brand and Distribution