So, why am I so down on a company that actually turned its numbers around? Well, it's all about the risk/reward. I guess I just don't perceive enough reward based on the risk offered by the stock. Revlon doesn't seem to have the best brand equity out there. Don't get me wrong, the Revlon name still means something. It has value. It just doesn't possess enough of it in a relative sense. At least, that's my take on the brand at this time.

I need to see the company really get that top line moving again. Hey, if you say that you're getting the feeling that Revlon might be going in the right direction and that there's a justifiable trade here, believe me, I hear what you're saying. In fact, when Revlon reported this week, the stock shot up quite a bit.

Believe it or not, this is one of those situations where I'd rather see a lot of strength in the stock before buying. I'd like to see the situation become a lot less speculative before speculating with my own money. That doesn't necessarily conform to the buy-low-sell-high axiom, but I can live with that. I think the company remains a work in progress, and I think this low-priced equity could end up being quite volatile. Maybe the volatility will have a bias to the upside, but considering the fact that this rally is getting old, and that it may end suddenly, without warning, I wouldn't want to be playing around with Revlon if things went south. I'd rather be aligned with more fundamentally sound names.

Disclosure: I don't own any company mentioned; positions can change without notice.