Newell Brands (NWL) - My "beat down" stock buy

Newell Brands


  • It is "beat down" ... 48% off of its 52 week high
  • Low P/E ratio
  • I expect my first dividend of $ 23. in mid-March
  • I like the brands 
  • My investment horizon for this is at least 52 weeks.
  • Basically the return beats the yield on my savings account
Related: This is positive:


  1. The Starboard letter today is interesting:

    Newell’s product portfolio consists of many iconic and valuable franchises, representing marketleading
    brands that operate in both niche and large, growing and unconsolidated global categories.
    We believe that Newell is deeply undervalued and that significant opportunities exist to create
    value for the benefit of all shareholders – opportunities that should be well within the control of
    management and the Board of Directors (the “Board”).
    Unfortunately, Newell’s recent operating and financial performance have fallen well below both
    the expectations set by the Board and the Company’s true potential. Within the last six months,
    the Company has reduced its 2017 financial guidance three times following continuous
    underperformance in both revenue and profitability. This has resulted in extremely poorshare price
    performance, and Newell has drastically underperformed both its industry peers and the overall
    market. In fact, since the closing of the Jarden acquisition, Newell’s stock price has declined by
    over 42% while the S&P 500 has increased by over 41%, resulting in cumulative
    underperformance of approximately 84%. This massive share price underperformance has resulted
    in Newell trading at less than 10x 2018 EPS, both a multi-year low and a substantial discount to
    its peers and the broader market. Furthermore, since July 1, 2017, Newell’s stock price has
    declined by over 53% while the S&P 500 has increased by over 18%, resulting in
    underperformance of approximately 72%.

  2. So you bought about 25 shares?

  3. Jim, I bought a beat down stock yesterday too. It would be fun to have a contest to see who made the better buy. :) Mine is already down today, so I'm already embarrassed to mention what it was.....But I think it can come back.


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