I noticed Rubbermaid recently on the list for stocks making 52 week lows. Just a couple of years ago, this company was listed in Fortune magazine as one of, if not the most, respected companies in the US. The last couple of years, however, have been difficult ones, in part, due to higher raw material costs, tough competition and some riffs with major customers.
Now, the stock is trading at 22 with 1997 earnings projected at $1.30 per share. The five year growth rate is estimated to be on the order of 13%, and the stock pays an above market yield of 2.8%.
I am wondering if anyone has thoughts on the valuation and long term prospects for RBD. |