It might surprise readers to know that we find fundamental analysis very useful. Leading up to the fundamental analysis is the technical analysis that is necessary to guide our overall perspective of a given stock. In the case of J.M. Smucker (SJM), the stock appeared on our watch list in June 2017 as the price reached a level which led us to pay a little more attention. One fundamental that we like to track is the Altimeter which is best analyzed using a chart.
The Altimeter was first described by Edson Gould in Barron's on February 21, 1968. Gould asserted that the relationship between the price and the dividends paid on that stock, or index, tell investors of under or overvaluation. It is important to make the distinction between Gould’s Altimeter analysis and his Speed Resistance Line [SRL] analysis. Altimeters are based on the dividend payment relative to the stock price while the SRL is based strictly on the price movement.
In the case of J.M. Smucker, the Altimeter appears clear with little need for interpretation.