Nestle: It's a Swiss Thing!

Last week, Nestle broke above its strong horizontal resistance at ~RM70. The breakout is not accompanied by increased volume. If it can recruit enough buying support, it may continue to rise. The potential target is RM80.00.

Based on technical consideration, Nestle can be a good medium-term investment.


Chart: Nestle's monthly chart as at Jan 26, 2015 (Source: ShareInvestor.com)

We can say a lot about this well-managed company but we cannot say that it is a cheap stock. Its PER is at 30x while its PB ratio is 23x. For a "hugely expensive" stock, it has a decent DY of 3.3%. In fact, that and its strong management have always been its strong selling selling points. Let's see how far these strengths will carry the stock. Good luck!


Table: Nestle's key Statistics (Powered by ShareInvestor.com)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of,Nestle.