Mark Ketchum, the CEO and President of Newell Rubbermaid Inc (NYSE: NWL), bought 20,000 shares of his company's stock late last month, according to a SEC filing. Newell, which has been showing signs of beginning a sustainable turnaround, got hit hard in the recent stock market correction, with shares dropping from $30 to around $25, a 17% decline.

Investors are concerned that recent revenue growth is unsustainable and will weaken as the economy slows. However, in a report released this morning by Bank of America (NYSE: BAC), management believes the growth initiatives that have been put in place are taking hold and 3% to 5% revenue growth is doable despite the slowing macro environment. However, B of A is somewhat skeptical and maintained its Neutral rating and $28 price target.

Merrill Lynch & Co. (NYSE: MER), in a report released yesterday, wrote that investors should jump on board Newell's stock, as the correction has been overdone. Newell should earn $1.78 this year, jumping to $2.00 next year, implying price-to-earnings ratios of 14x and 12.7x for 2007 and 2008, respectively. This is cheap for a company owning such well-known franchise names as Rubbermaid, Sharpie, plus a whole host of others. Merrill has a $34 price target on Newell Rubbermaid.

This morning, Newell Rubbermaid Inc (NYSE: NWL) reported strong gross margin improvement, jumping 210bps, a big move. Sales growth came in at 3%, a bit light.

Full-year guidance looks good, however, with sales expected to grow 3% to 5%. Gross margin improvement for the full year also looks solid, with a 150 to 200 bps increase.

At first glance, Newell reported solid results. However, the results are not spectacular, either. It will be hard to find news that will drive this stock higher in the near term. There needs to be more evidence of product initiatives that will get investors excited about this stock and push it higher.

As a follow up to my blog yesterday, here are a few other ideas to look at as this stock market correction continues to unfold.

Newell Rubbermaid Inc (NYSE: NWL), a stock we have blogged about the merits of repeatedly during the past year, is holding up steady. There are a couple of reasons for this -- first, Newell, as a consumer staple company, attracts money during volatile markets, and second, the belief that its turnaround is for real.

Dynegy Inc (NYSE: DYN) is also holding up well. Similar to the IP transport companies blogged about yesterday, this stock typically got hit hard during these market corrections during the past few years. However, in this selloff, it has declined little. With private equity firms eyeing TXU, investors are beginning to believe in the merchant power business again.

Use this correction and current bout with fear to pick up some good stocks. Newell and Dynegy are companies to throw into your portfolio.

Newell Rubbermaid Inc (NYSE: NWL) held it analyst day with the investment community on Tuesday. Yesterday, Newell was getting upgraded across the board.

We began blogging about the merits of Newell's turnaround back in April when the stock was trading at $26, today the stock is around $31, up 19%. Merrill, Smith Barney and Oppenheimer have raised its price targets to $34-to-$35 price range.

In my opinion, the analysts' price targets are too low. Estimates are for Newell to earn $1.95 per share, but Newell will most likely earn over $2.00. Also, as the company exceeds earnings expectations, the P/E investors are willing to pay will go from 18x to 20x. I see Newell's stock price approaching $40 by the end of 2007.

Newell Rubbermaid Inc (NYSE: NWL) reported another very solid quarter under the reign of CEO Mark Ketchum. Newell grew organic revenue 4.7% before the impact of the DYMO acquisition. Including the DYMO acquisition, revenue grew 8.5% -- very solid numbers for a company that has struggled with revenue growth for a long time.

Guidance Highlights:

• Ketchum expects organic growth to continue
• Resin costs, a big expense for Newell, should continue to moderate and begin benefiting the company
• Costs savings to continue which should lead to gross margin expansion
• Expects lower double digit operating income growth

Newell, who has been in the investors' doghouse for years, is beginning to perform well, both in terms of operating performance and share price. The stock has had a good run increasing from $22 to $30 during the past year. The stock might pull back due to Newell re-investing in its business at the SG&A line which might impact 1Q07 results. I would use any of this price weakness to get into this stock.

Graco Children's Products, a division of Newell Rubbermaid (NYSE:NWL) has announced a voluntary recall involving Graco Contempo Highchairs. On January 18, 2007 after receiving just 18 reports domestically and another two reports from outside the United States, Graco announced that it is recalling approximately 100,000 baby highchairs which pose a potential for collapse if not properly locked into the open position when taken from the storage position. Of the 20 reported chair mishaps that led to this recall only one incident resulted in what was reported to be a bruise on the foot of an 18-month-old baby boy.

Graco assures its customers that the highchairs are safe and fully functional if the user is certain that the "hub" is locked into place when the chair is opened fully. Graco states that when the highchairs are fully opened, the user should hear a "click" signaling that the hub is locked into place. Graco is voluntarily recalling the highchairs to make consumers aware that a free repair kit is available to further protect against any problems with the highchairs.

For full information involving this recall, including all affected model numbers, please use this Consumer Products Safety Commission link. You will find everything you need there to make sure that your Graco Contempo highchair is in top notch working order. If you wish to contact Graco directly, here's the link to the Graco website.

Thanks to Graco, Newell Rubbermaid and the Consumer Products Safety Commission for addressing this matter so quickly and responsibly.