Wrigley Is Worth a Nibble

Wrigley (WWY), a chewing gum (Doublemint, Juicy Fruit, Spearmint, Big Red and more) and candy manufacturing, is on the price downside but the stock is worth looking at as a possible buy. The price chart shows WWY is trading below the lower boundary of its 10-year price channel indicating the downside could be coming to an end. WWY has strong support at around $45.

Although buying on the downside is always problematic, now could be a time for patient investors to add WWY to a conservative dividend-reinvestment portfolio. WWY pays a safe dividend and its long-term earnings growth prospects are excellent.

It would be prudent to invest just a portion of the total dollar amount you plan to eventually allocate to WWY. So if the stock were to continue on the downside, you could buy additional shares at lower prices.

Posted May 30, 2006.