Newell Rubbermaid, Inc. (NYSE:NWL)

CAPS Rating: 5 out of 5

The Company is a marketer of consumer and commercial products that touch the lives of people where they work, live and play.


Player Avatar darroj (28.90) Submitted: 12/19/2008 4:33:34 PM : Outperform Start Price: $9.25 NWL Score: +16.40

Newell and Rubbermaid merged back in 1998, so no worries there as far as company stability goes. NWL owns Rubbermaid, Calphalon, Sharpie, Graco (child safety seats), Irwin (hand tools and power tool bits/blades), Lenox (more tools), Levolor (windows and blinds), Papermate (Pens/Pencils), Dymo (label maker), Waterman (pens), Parker (also pens), Goody (womans hair brushes, bobby pins, etc), Bernzomatic (propane torches), and Amerock (cabinet hardware). Pretty diverse, been around for a long time. They also recently acquired Technical Concepts (Hygiene, as in touchless sinks), and Aprica (baby strollers). Was recently downgraded by some analyst to "market perform." Results this year are down, debt increased due take overs, but I like the recent Technical Concepts acquisition. They do touchless sinks, soap dispensers, touchless trashcans, aircare, pretty interesting stuff for the commercial/office side.

They're going to miss 4Q earnings, already issued a revised 4Q outloot, but that was 2 days ago, meaning stock already dropped (was at about 13, now at 9.50 or so). I really like the prospects of this one which just got beaten down significantly. 30% drop due to the bad news makes for a great long term buying opportunity I'd think. They will be doing some workforce reductions in 2009 (8-10%) in order to become more competitive. No mention of decreasing dividends.

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