Avon Products, Inc. (NYSE:AVP)

We are suggesting a Short Sale on Avon Products AVP at 23, Not a purchase a Short Sale at 23.
We are looking for move down to $17.00.
ValueStockPlayers

For reference point and to allow for comments by others. As of the end of March, 2013.

ROE- -(5.51%)
Trailing PE N/A
PB 8.67
Div yield 1.00%

This company has cost effective anti-aging products and little to no sales overhead.

Great Product. New Management!

Above 30 SMA, Positive MACD, Positive Stochastic, Relative Strength Index above 50

With all the job cuts and management changes things can only get better. I am biased , I work at Avon !

barron

New management and possible take over

Revolving debt is nearly 1 billion dollars short term, not to mention the 2.5 billion in long term debt.

Cash equivalents only 1.25 billion, Net income continues to decline from 2008, while the debt position remains largely the same.

Payout ratio is 159%, given the declining income and no improvement to debt, that is not going to last. When they start slashing the dividend, anyone that is attracted to the stock for that will be leaving.

The global situation is very fluid right now, in particular in descretionary retail, and this is certainly not best in brand, so to expect them to outperform the global situation is not happening. financing will become more difficult as their debt is downgraded. Global financing for companies issuing bonds is cheap now for mega greats, but I bet Avon has to go hat in hand to the banks and they probably don't get the best deals.

I don't see anything on the long horizon that saves this company. They could get bought out, after losing a bunch more of their stock price. Steer clear. Why bother with an unstable dividend outlook and non grower in this environment?

will do well overseas

The company has been slowly murdered by previous CEO Jung. With new CEO on board, there might be a chance that the stock will pick up. I am somewhat bullish, although I am not buying until there is a clear signal the company recovers.

From 2007 - 2010, AVP either outperformed or was extremely close to outperforming the S&P. AVP's former CEO sat on GEs Board of Directors and they are an innovator in the industry. I believe the new management will continue to partner with GE to stay ahead of the market and their perfornace will shift back to historical trends.

it's dirty cheap now!

Semi-luxury goods company for middle-class Americans, coming out of a recession, combined with being at the very low side of its 52 week price range. Lots of room for upward movement with a P/E ratio of 10. The 5% dividend yield adds additional built-in value AS WELL AS investor-type characteristics to the holding, making this a good buy for either an equity-based OR a dividend-based investor.

They need a new CEO. She is the worst CEO for this company. The stock will hit 52 week high again once a new CEO is announced.

12/16

Avon presents good value in their stock because of it being oversold and its 4% dividend. They have made advancements in their skin products putting it on par with Estee Lauder and Lancome for half the price. Great company for those unemployed, easy to sell products because you can easily convert customer once theyve tried products.

5 year annual dividend growth rate of 6%. Much higher ROE ~45% compared to industry average ~23.5%. Good for the long term

Avon looks oversold here. I'll take the 4%+ dividend and wait for its price to recover.