Gillette (NYSE:G) announced today that it has a power tool for a woman's hand, but one that delivers "gentle" pulses. If that sounds patronizing, think harder. You guessed it. Gillette introduced the Venus Vibrance, its first power wet shaving system for women.

Building on the technology it used in the men's M3Power razor brought to market in May, Gillette is introducing the "closest, smoothest Venus shave ever."

For the desperate-for-gift-ideas men reading this and saying, "Hooray," be warned that this is not going to be available now or for Valentine's Day. Start looking next spring.

For Gillette shareholders, this is a triple winner.

First, you have the new razor to sell -- and everyone from Drugstore.com (NASDAQ:DSCM) to Walgreen (NYSE:WAG) will want to join the promotional push to move these high-margin items. That bodes well for anything branded Gillette.

Second, you don't need to read Harvard Business School case studies to know the money is in the blades. A package of four blades will sell at retail from $9.99 to $11.99 -- a premium price for a product you can only get from Gillette.

Third, Gillette owns Duracell, and there is a copper-top AAA battery in every razor package. Talk about cross-selling. Energizer (NYSE:ENR), which bought Schick from Pfizer (NYSE:PFE) in 2003, has yet to find a good reason to put its bunny-powered batteries in with its razor blades.

Yesterday, Moody's announced it was raising the outlook for Gillette to positive. But fellow contributor Steve Mallas is cautioning investors about Gillette's declining free cash flow, which fell 26% from the second quarter of 2003 to the second quarter of 2004. Follow Steve's lead and watch the cash flow.

Gillette's stock has risen 30% over the last 52 weeks. It is certainly benefiting from the 24.6% increase analysts expect in this year's earnings. But, with only a 12.6% earnings gain forecast for next year, the stock is selling for what looks like a premium at 24 times 2005 estimated earnings. Unless the power tool for women can make free cash flow take an unexpected jump, investors would be wise to wait for lower prices before buying Gillette. Besides, the $0.65 annual dividend (a 1.4% yield) isn't all that tempting either.

For related Fool analysis, see:

Fool contributor W.D. Crotty does not own stock in any of the companies mentioned -- but does own a Gillette razor. Let's pray W.D. uses it today.

The Motley Fool is investors talking to investors. Discuss Gillette and Energizer, or thousands of other stocks, on The Motley Fool discussion boards.