It goes without saying that this market remains a stock picker's market. Select the wrong stock, and there's a 30-40% haircut up ahead; select the correct stock, and you're positioned for the recovery with modest downside exposure. For a chance at the latter, consider Tupperware Brands Corporation (NYSE: TUP).Tupperware will benefit from the trend toward many, many more leftovers and fewer meals out, as Americans rebuild savings amid the housing and stock market slumps.
In general, analysts are impressed that Tupperware has strengthened its position in several key markets, and are also impressed by TUP's emerging markets presence, which registered an 18% sales increase in FY 2008.
Analysts also generally favorably view TUP's decision to acquire a beauty/personal care products business from Sara Lee, concentrated primarily in Latin America and Asia Pacific: margins for these two lines are expected to exceed TUP's corporate average. The First Call FY 2009/FY 2010 EPS estimates for TUP are $2.00 to $2.31.
Stock Analysis: Tupperware is a moderate-risk stock. Consider buying a 25% position in TUP now; then buy another 25% in three months. Under any circumstance, don't buy more than 50% of your TUP position in the first half of 2009. Sell/Stop Loss if you were to buy shares in this company: $8.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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Reader Comments (Page 1 of 1)
4-28-2009 @ 10:23PM
Jane said...
My Mother was a Tupperware Dealer now my daughter and I are involved in Tupperware. It is alot of fun. I can see with the downturn of the US economy that many more people are interested in Tupperware. I just wish that it was manufactor in the US instead of Greece:)