Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of beauty products supplier Avon Products
So what: The big news of the day is that JAB Holdings announced that it was selling a 4.9% stake in Reckitt Benckiser, which would net the company approximately $2.1 billion. This is relevant because JAB is also the majority owner of Coty, the cosmetics company that made a $10 billion bid for Avon last month. The move is largely seen as JAB garnering extra finances to help facilitate the potential takeover.
Now what: Just what Avon's stock needed: more speculation. Whether or not Coty does wind up purchasing Avon seems trite to me given that Avon's business has been struggling. In its latest quarter, sales dropped 1% while price increases provided the only boost. That's notable because beauty salons Ulta Salon
Craving more input? Start by adding Avon Products to your free and personalized watchlist so you can keep up on the latest news with the company.