Blyth, Inc. (NYSE:BTH)

CAPS Rating: 1 out of 5

The Company designs, markets and distributes candles, decorative accessories, seasonal decorations and household convenience items, as well as tabletop lighting, accessories and chafing fuel for the Away From Home or foodservice trade.

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Player Avatar jericson (99.77) Submitted: 9/14/2006 5:22:13 AM : Outperform Start Price: $37.57 BTH Score: -125.34

The PartyLite segment of the business (think Tupperware for candles) ought to continue to perform well. My wife is a buyer of PartyLite products and she loves how they brighten her day. (Pun intended!)

The direct marketing aspect of the business, while a turnoff on Wall Street, means that the sales force is highly motivated. Blyth has recently been investing in two more direct marketing businesses.

But currently Blyth is being weighed down by restructuring costs in other parts of the company (wholesale in Europe) and rising costs of raw material such as paraffin wax. These problems are temporary and in a few years management ought to be able to turn things around. A spinoff might unlock value at some point.

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