Fortune Brands, Inc. (FO)

I only recently put Fortune Brands, Inc. (FO) on my radar, but given the current marketplace, I like what I see. Finding a well-diversified portfolio of name brand products that includes: Jim Beam burbon, Titleist golf and Moen faucets, amongst others. Even as the economy falters in the current "recession", many of these products should still see a fair demand, while FO continues to pay a solid dividend (almost 4.3% at this level). As we round-out 2008, I'd put my $$ on the fact that FO could easily put on 20-30% during the next year long before the DOW would see similar and I'd stay on-board for the long term with this play.

FO recently made a huge purchase in the liquor industry, which will never cease to sell. In fact, if a recession were (and I say "were" in the conditional tense because I do not believe it will come) to come, I believe the liquor industry would take off as people resorted to drowning their sorrows in alcohol. Not to mention that their top-of-the line Titleist golf equipment is extremely popular, especially with the baby boomers retiring to the country club.

Fortune Brands share price has been wrongly knocked down because of the housing "bubble" popping. People will continue to remodel the houses they own and that should keep FO's cabinets selling strong. Besides cabinets they sell golf clubs and top shelf liquor, this is my kind of company!

Cramer's Value play--I agree

Products for people with a bit of spare cash. All high end... golf, spirits and wine and faucets. Has taken a bit of a hit with the housing slowdown, but the golf and spirits/wine should moderate this. I've followed them since they bought my favorite winery, Wildhorse, a few years back. Nice steady return and growth.

Fortune brands with unfortunate products!!!

The U.S. economy is struggling with downturn in housing market. The U.S. mortgage default rates hit an all-time high in the first quarter of 2007 and has refrained people to renovate their home. Fortune brand seems to be the victim of cruel housing market environment, which derives more than half of its revenues from Home and Hardware segment.

Revenues for first quarter of 2007 from Home and Hardware segment declined a mere 1% despite a decline of more than 10% in the U.S. home products market. Revenues benefited from acquisition of Simonton, new products and line extensions. While comparable sales for our Home products brands were off in the range of 10%. The Spirit and Wine segment displayed some resistance by posting a positive growth in operating profit. However, the transition in distribution for Spain to its Maxxium Worldwide joint venture has dragged down the revenue growth by 9% in Sprit and Wine segment. Strong global consumer demand for our premium and super-premium spirits and wine brands drove mid-single-digit growth in distributor case volume shipments, led by double-digit growth for Sauza, Courvoisier and Teacher's.

The company expects that the downturn in the overall U.S. home products market would persist and would display double-digit rate decline in 2007. Consequently, this will to continue to impact results for home products brands. However, the company believes strong performance in Spirits and Wine and growth in Golf will help offset lower results for our home products brands. But in reality it seems a tough ask for the company to break-even, unless and until it shifts a major part of its portfolio towards Spirits and Wine segment.

Fortune Brands has two important characteristics: First, it owns items of significant value Jim Beam, Laphroaig, Courvoisier, Maker's Mark, Knob Creek, Moen, Master LockTitleist. Second, it pays a healthy dividend of 44 cents a share or 4.5% at a payout ratio of 33%. On top of this the stock has fallen 50% in the recent market meltdown. while quarterly net income has remained strong. Combine this with recent share buybacks.

Great long term stock, particularly for a dividend reinvestment program.

In times of slowing economies booze is good. So carry on Jim Beam.

Golf and good whiskey are American needs.

I like the diversity this company provides along with the great management team and significant dividend.

Less stringent trade laws with China.

has been beat up this past yera , but will come out well in long haul. Good time to buy if you don't have, but if your like me, and alredy have a good chunk be sure you reinvest your dividends.

Number 1 golf brand, and oh bye the way Tiger. Best locks, doors,and whiskey. Nuff said.

Well managed company ever since they danced out of tobacco liability. Recently they spun off office supplies; an industry that competes on who can have the cheapest price. Great premium brands with good market share, low PE.

A Conglomerate that has been beaten down. Co has a 9%long term growth average and a yield of 2.5%. Cauurent price is a buy. Besides sells Jim Bean and Titleist golf balls
what more do you want

Because liquor and golf balls will be a necessary evil in a recession.

Diversified in areas that do well in a recession and in areas that STINK in a recession. As a result the stock has taken a recession dip but should hold firm from here and start back up again if lower interest rates and declining property values spur the home market even slightly. In the short run, the Spirits division will keep on performing. With more people eating in the bars may be doing less business, but people are still drinking, especially the better brands! 20 plus year growth chart trounces the S&P. Heavy acquistions have lead to mounting debt, but within Fortune Brands ability to pay. Good solid dividend, especially at these stock prices. Bottoms up while you ride the recesson train, this one should come out soon on the uphill.

FO trading below book value, mostly because of their home products and golf equipment segments, but really a nicely diversified company. Also trading at a PE that is below the S&P. Big dividend, lots of cash generated by the liquor segments, and a nice footprint in the wine industry. Booze will carry this company through and the home segment can be sold off it it weighs the company down too much. I liked this company before SA picked it and am drooling over this company at the present price. Plus I like liquor...:-)

The pitch for this stock can be found on the Stinky Feet discussion board at http://boards.fool.com/Message.asp?mid=27346313 . Stop by and let us know what you think of this stock.