Tech talk: Avon Product, Inc.'s (NYSE: AVP) restructuring is paying-off, but the stock has run into technical resistance at/near $33, so I'm not recommending the purchase of additional shares at this time. Those investors who purchased AVP when first recommended on May 6, 2009 at a price of $23.12 should hold their shares.
The world leader in direct-marketed cosmetics, toiletries, fashion jewelry, and fragrances, a negative foreign currency effect and U.S. consumer spending doldrums may be behind the resistance at $33: I'll await Q3 results before making a call, but I've revised the Sell/Stop Loss to $24, to guard against any nonsense. The First Call FY2009/FY2010 EPS estimates for AVP are $1.67 to $2.11.
Stock Analysis: Avon Products is a moderate-risk stock. If you've already purchased the company's shares, hold them. Don't buy any additional shares of AVP at this time. Sell/Stop Loss: $24.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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