Tupperware Brands Corp (NYSE:TUP)

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everbody use tupper ware

international exposure good management

Earning surprises, analyst upgrade

correction on the way...+24.88% (+ $6.47) 8/1/07 12:51PM +80 - 12

A sleeper, may merge soon, keep an eye on it.

Stock is undervalued. TUP is now doing brisk sells in mall kiosks. MACD and Stoc are rising

Everybody needs tupperware...really, it's the fundimentals...I guess

Tupperware Brands is a global retailer of premium innovative products in categories as diverse as kitchenware, personal care and beauty products. The company utilizes an independent sales force and has presence in over 100 countries worldwide. The main revenue drivers for the company are new product innovation and increasing sales force. The company uses three major brand names namely Tupperware for its kitchen products, BeautiControl and International Beauty for its skin and beauty products.

The company competes with other retailers and department stores that sell household products, other than that they also compete with local stores. The business of the company is divided into four geographical markets: Europe comprising Europe, Africa and Middle East, Asia Pacific, Latin America and North America. Due to this heavy reliance on foreign markets close to 75% of revenue, earnings are thus exposed to exchange rate risks. Segment wise, Tupperware brand has been contributing close to 80% of the total revenue for the past five fiscal years.

The company’s business in its Latin American and Asia Paicific Market has been growing well over the years partly aided by the growth in consumer spending and partly due to the introduction of new and innovative products. The company has been streamlining its operations and as a result has achieved a 20% cut in its overhead expenses by the end of 2006. This is going to translate into a $6.0 million savings in the expense incurred to sell the goods in the coming years. The company also acquired the direct selling arm of Sara Lee Corporation, which will prove handy in increasing its reach. Industry outlook for 2007 is moderate and is expected to follow the general economic trend. The company is well equipped to handle the situation, which can well translate into a positive stock movement.

TUP is a company with two excellent businesses based on a similar and synergistic mode of operation: home and office parties to sell Tupperware and, now, beauty products. However, it has suffered in the past from rather stupid management steps that have impaired the domestic US market ( it started to sell through retail stores like Target and demoralized its party-giving sales force; it has yet to reconstitute that sales force in the US once the abortive effort was terminated ). It has a straightforward but time-consuming path to reconstitute and remotivate its domestic cadre of sales agents. It is presently stronger in foreign countries than in the US. The beauty segment is growing and appears promising. Not incidentally, Berkshire Hathaway has a similar operation and TUPs acquisition would be a good fit and is a possibility once the management gaffe has been remedied.

The products look sometimes horrible, are ridiculously priced BUT with a direct sale structure, this means more profit!

good fundamentals

good company

I think they are at a good time to buy. The stock also offers a nce dividend.

With an P/E of just 15x (compared with 20-30x for the industry) and the stock just off it's lows, this stock is cheap. It's out performing it's industry in just about every category.

Their stock went down because of increased oil prices to make their plastics. Should see a turnaround now that oil prices are dropping.

TUP is still everywhere, and international growth remains a strong prospect.