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1-Star Stocks Poised to Plunge: Revlon?

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, beauty products maker Revlon (NYSE: REV  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Revlon's business and see what CAPS investors are saying about the stock right now.

Revlon facts

Headquarters (Founded)

New York City (1932)

Market Cap

$545.1 million

Industry

Personal products

Trailing-12-Month Revenue

$1.29 billion

Management

CEO Alan Ennis (since May 2009)
CFO Steven Berns (since April 2009)

Revenue and Net Income Growth (Over Last Year)

(7.2%) and (45.9%)

1-Month Return

117.5%

Cash/Debt

$62.5 million / $1.28 billion

Other Highly Rated Personal Products Stocks

Procter & Gamble (NYSE: PG  )
Colgate-Palmolive (NYSE: CL  )
Kimberly-Clark (NYSE: KMB  )

CAPS Members Bearish on REV Also Bearish on

Targacept (Nasdaq: TRGT  )

CAPS Members Bullish on REV Also Bullish on

General Electric (NYSE: GE  )
Citigroup (NYSE: C  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 45% of the 160 members who have rated Revlon believe the stock will underperform the S&P 500 going forward. These bears include isavchuk and UltraLong, the top ranked member in all of CAPS.

Just yesterday, isavchuk cautioned Fools that the stock could easily smear a perfectly fine portfolio: "Relative to its industry, Revlon has average margins, average growth, below average financial efficiency, and a HUGE debt. 'Cigar Butt'? At $2/share maybe."

In a pitch from two days earlier, UltraLong also warns against putting lipstick on Revlon's pig of a financial position:

Ya know, everyone is just applauding this earnings report as the second coming … did anyone actually scroll to the bottom where they have balance sheet facts and notice those little words on the left hand side? "Stockholder deficiency"! This is usually where the phrase stockholder EQUITY is! This is a good indication that there is ZERO equitable value in the company despite their profit. They have a mind-boggling, earth-shattering, camel crushing 1.28 BILLION dollars in debt.

What do you think about Revlon, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Procter & Gamble and Kimberly Clark are all Motley Fool Income Investor picks. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 05, 2009, at 12:42 PM, IBDvalueinvestin wrote:

    UltraLong have you ever heard of Warren Buffett? He does exactly the opposite of what you do. He buys when others are fearful. Plus have you never heard of a turnaround thru restructuring? There is a big market for Revlon and its cheaper priced makeup especially in times when the consumer tries to save money. Can you tell the difference between a women with Revlon makeup over one with Estee Lauder? I can't ..

    Revlon resurgence will shock many disbelievers.

  • Report this Comment On November 05, 2009, at 3:33 PM, TMFUltraLong wrote:

    Can I tell the difference between make-ups? No... I'm a guy...we're oblivious to everything in that regard.

    But yeah, I've heard of that Warren Buffett guy, and I can tell you with damn certainty that Revlon is in no way form or shape comparable to anything that Warren Buffett picks for his portfolio!

    UltraLong

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Related Tickers

2/14/2012 4:00 PM
REV $15.82 Down -0.12 -0.75%
Revlon, Inc. CAPS Rating: *
KMB $71.63 Down -0.11 -0.15%
Kimberly-Clark Cor… CAPS Rating: *****
PG $64.48 Up +0.25 +0.39%
The Procter & Gamb… CAPS Rating: *****
TRGT $6.45 Up +0.11 +1.74%
Targacept , Inc. CAPS Rating: *
C $32.08 Down -0.80 -2.43%
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CL $91.90 Up +0.26 +0.28%
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GE $18.94 Down -0.13 -0.68%
General Electric C… CAPS Rating: ****

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