P&G, apart from manufacturing soap and such, is also one of the top pharma companies and is thus considered a 'defensive' stock (one that doesn't go down too far in a market collapse). BP and Amoco are dependent upon economic activity - cars and oil - and when that goes down, so do they. GE is a mixed bag including a sizeable financial segment, electrical equipment and such like. When the economy tanks, so do they.
It's also worth looking at how much cash they're holding, although that matters more to the smaller copmpanies than the larger ones.
Simon----- Original Message ----- From: <wokshevs@xxxxxx>
To: <lit-ideas@xxxxxxxxxxxxx>; "Andy" <mimi.erva@xxxxxxxxx> Cc: <lit-ideas@xxxxxxxxxxxxx> Sent: Saturday, November 08, 2008 7:16 PM Subject: [lit-ideas] Re: lit-ideas Digest (editing) and Missouri)
Speaking about a financial crisis, is there any sound reason why stocks like GE and BP/Amoco have dived significantly over the past four months, while Procter & Gamble stock has increased? Is it that people in America feel they need tostay clean and pleasantly smelling regardless of their material being-in-the-world? Note that I ask for sound reasons, not reasons that sound good. Walter O. CEO Morgan Stanley Nautical Equipment Ltd. Ft. Lauderdale, FL
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