Newell Rubbermaid wants you to know that 'dinner-in' is in

Newell Rubbermaid, like that other high-profile food container company that Rubbermaid never wants anyone to mention, will continue to profit from the the 'dinner in' trend, as 'frugal consumer' Americans shun dining out for a very long time, which means leftovers will increase. That's bullish for the company's Rubbermaid food storage containers; kitchen utensils will also see impressive gains.

Still, Newell's office products unit will likely face continued tough sledding, due to sluggish business formation and tight corporate budgets in the U.S. The company's effort to exit lower-margin products is encouraging, and any above-consensus GDP growth for the U.S. in the quarters ahead would boost NWL's office product sales. The First Call FY2009/FY2010 EPS estimates for NWL are $1.32 to $1.46.

Technically, Newell's stock chart is strong – an uptrend, but with above-average volatility. Newell will encounter two-year resistance at/near $19, then psychological resistance at $20. But the overriding point is that NWL has room to run in the years ahead.

Finally, the Sell/Stop Loss has been raised to $8, or to just below cost, from $3. Hence, this is, essentially, a zero-risk trade for your April-bought shares.

Stock Analysis: Newell Rubbermaid is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in NWL now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your NWL position before December 2009. Revised Sell/Stop Loss if you bought shares in this company: $8.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.