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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (60208)	1/25/2018 10:29:29 AM
From: E_K_S	Read Replies (2) of 78730

Major strategic reset on the way at Newell Brands Newell Brands ( NWL -19.3%) falls hard after lowering its full year guidance. The company expects sales growth of 0.8% vs. +1.5% to +2.0% prior outlook and EPS to fall in range of $2.72 to $2.76 vs. $2.80 to $2.85 prior. Newell also revealed plans for a huge transformation that will see the company look to explore options for some industrial and commercial assets, as well as reduce its factory and warehouse footprint fall by 50%. Some of the brands that could be shopped include Rawlings, Goody, Rubbermaid Outdoor, Closet, Refuse and Garage and U.S. Playing Cards. "We are committed to achieving our transformation objectives and are taking decisive action with speed to adapt our agenda to the unprecedented volatility in our retailer landscape," says CEO Michael Polk. -------------------------------------------------- Was looking at their product portfolio and they do have several old brands that need to be sold and/or replaced. I suspect any sales will be seen as a fireside sales event and mat/could only get 75% on the dollar. I reduced the GN BV calculation and stock still seems under valued even after this news. Adjusting for the new EPS estimate and lower BV, the GN fair value drops to $34.00/share. Will let the dust settle and make another buy soon but any recovery will take months (if not over a year) to transform this company into a new leaner growth company. EKS

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