ATML Earnings Action

Investors looking to put cash to work in a low-interest rate environment will seek safety and decent dividend yielding names - recession proof companies like consumer products maker Clorox Corp. (CLX), so it is surprising to see shares exhibiting such relative weakness this morning, off close to 4% and nearly testing long-term support at $52. Clorox has failed to gain much traction lately, even after Friday’s positive analyst initiation from Jefferies & Co. which put a 12-month price target of $66 on the stock. But trading at 12.7x 2009 full year earnings of $4.17 and sporting a healthy 3.5% dividend yield makes recent selling unjustified and technically oversold conditions should set up Clorox for a nice sustainable near term bounce.