01 February 2006

Penniless Pampering Stocks - RDEN

Blog Hog Jonathan Last started me down this perfumed path with a passing thought on our generation's futile struggle to financially surpass our parents. So in that quest to make some cash, I eventually found myself at Yahoo! Finance's small cap growth screen. There I found Elizabeth Arden (RDEN). I then moseyed over to the usual places (Morningstar and SmartMoney) for some sweet smelling insight. I found that RDEN is a dog, the runt of the litter. Here are some fundamentals and grades:

Ticker - 5-yr Sales Growth - Net Profit Margin - PEG - Price/Cash Flow - ROE/ROA - On-Balance Volume Index - Morningstar Grades (Growth, Profitability, Financial Health)

RDEN - 1.08 - 3.6 - 1.34 - 10.4 - 13.1/4.5 - 91 - (B, C-, C-)
EL - 7.37 - 4.9 - 1.53 - 13.9 - 22.6/9.9 - 476 - (B, A, A)
ACV - 8.71 - 6 - 1.55 - na - 14.4/9.5 - 215 - (B, A, A+)
IPAR - 22.74 - 5.5 - 1.74 - 20.3 - 11.8/6.3 - 133 - (A, A-, C+)
PARL - 10.33 - 11.3 - na - 16 - 19.9/15.5 - 142 - (A, B, B)

RDEN has the weakest fundamentals and growth. Even its volume indes shows that the Street is ignoring this stock in favor of some more attractive offerings.

Speaking of dogs, here are some flattering picks of two of the faces of RDEN:




Woof.

Blog Hog John Coumarianos pointed me to Estee Lauder (EL). EL's brands are not tied to individuals who can age less-than-gracefully, or quickly revert to their natural Cinderella-after-midnight trailer trash state upon marrying a Cletus. EL's brands include Beautiful, White Linen, and Pleasures--all timeless, pristing, evocative names.

Parlux (PARL) and Inter Parfums (IPAR) have classy brands as well. PARL has the licenses for Todd Oldham and Perry Ellis scents. IPAR manufactures and distributes Burberry, Paul Smith, and, um, Celine (but they looove her in Vegas...and in Quebec).

Alberto-Culver (ACV) owns TRESemme, a sponsored product featured on the Best Reality Show, Project Runway. Why is it the Best? Because if I'm compelled to tune in every week to a show about fashion designers, AND Heidi Klum is shaped like an over-inflated kickball, then the show is doing many things right.

EL and ACV are the established players getting tremendous notice by the Street, at least according to their trading volumes. PARL and IPAR are smaller growth plays that are getting also getting some notice. To me, they are the difference between floral and musk scents; just depends on your nose and personal taste. They all seem fine.

Any thoughts from my seven or eight readers?

1 comment:

Anonymous said...

Can we talk about what Citi Trends has been doing? It hit 48 this week. We need some more of those my man!