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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (17566)8/15/2003 12:44:38 PM
From: - with a K  Read Replies (2) of 78956
 
Anyone care for Newell Rubbermaid (NWL) at this price?

I've been watching it fall and wonder about stepping in here. Lots of things to dislike if one wanted to be bearish: debt, essentially no earnings growth last few years, narrow margins, declining estimates, ugly chart, and has a high payout ratio.

But the stock is near a multi-year low, yields 3.65%, and the company has some good brands. I was surprised to learn all that they do besides storage containers.

Company: NWL
Date: 8/15/03
2003's expected earnings: $1.58 (vs. consensus of $1.60)
Estimated 7-10 EPS growth rate: 10 (vs. 12%)
P/E maximum: 10
Graham Fair Value: $33.37
Current Price: $22.63
$ difference: $10.74
Percent Growth to Fair Value: 47.46%

FWIW, S&P has an "avoid" on it, citing weakening fundamentals and pricing pressures. But ValuePro gives a valuation of $42.

Any thoughts?
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