Energizer Holdings, Inc. (ENR)

Incredible brand portfolio, 1 or 2 position in each market, consumer staples, commercials suck though and need to create new marketing strategy, need more shelf space in costco and large consumer stores.

high roe, insider ownership. large debt to equity though.

Nice balance of disposable products. The debt commitments are manageable. There may not be a huge Christmas spending spree on battery operated toys though.

The fundamentals are working for me along with the positive cashflow. I really like the diversification into other disposable-consumable brands like playtex. Some people fear that they will fail to keep up with battery trends, but I think the risk-reward scenario from a low p/e stock with 15% or so growth rate combined with other growing product lines makes this a safe bet for new money in this frothy market.

I don't feel good about this latest SA stock pick, because I believe what was failed to consider is that as people transition from Alkaline batteries into rechargeable lith-ion ENR will be put under considerable pressure by companies such as Sanyo that makes a superior Envelope brand battery.

Looks like a good turnaround play. P/E is at low side of trading range. Expect it to recover.

ENR has proven to be able to smartly acquire companies and churn out products that people buy & trash. It's debt is priced in (too much) and it has great cashflow. I like the bunny.

Reasoning: Business
• Aug 09: 6.7% insider holdings or USD 309m on market cap of USD 4.6B
• Number 2 position but shares 80% of the market with the number 1 guy
o Energizer batteries make up 55% of their business and delivers 50% of the profits
o Playtex – number 2 tampon maker
o Schick-Wilkinson – number 2 in shaving technology
• Degree of control over growth in EPS via
o Share buybacks: 35% repurchased from 2003 to 2007
o Sales growth of 3%-4% - very reachable
o All above drove EPS growth of 30% per year

Reasoning: Financials
• Gross margins of 47%-49%
• Aug 09: Current multiple of 11 vs. historical of 13 to 23 – hidden “Davis double”

Risks
• Aug 09: Cash USD 448m / Debt USD 2.9B
• Encroachment of in-house brands

They own Playtex products! A relatively cheap and fair priced goods.

Watch what these guys are about to do with wireless power transferrence. It's going to be revolutionary!

bought overall assets during high priced years. now stuck with debt to pay and not so great economic environment. valuation can be much cheaper than today even if this company survives.
SELL

Solar, wind and other alternative energy sources need batteries to store energy for use when the source isn't providing what is required.

Good Company

Show me the battery power.

..HEY ENERGIZER BUNNY..... IT'S WABBIT SEASON......UNTIL GAS PRICES COME DOWN PEOPLE WILL NOT PURCHASE THE HIGH DOLLAR SCHICK RAZORS WHEN THEY CAN PURCHASE THE VALUE PRICED PRODUCTS...WHEN YOU HAVE TO CUT CORNERS TO SAVE A BUCK BRAND NAME PRODUCTS ARE A GOOD PLACE TO START YOUR SAVINGS.........

value play

A must have as an underperformer at this time in the portfolio to be an outperformer....!!!

ZINC PRICES ARE GOING HIGHER...

we all need batteries and these are the best