Avon

Topics: Stock market, Technical analysis, P/E ratio Pages: 16 (4130 words) Published: June 20, 2013
Sheila S. Olsen
ENG 3355
Dr. Robert E. Cason
May 15, 2013
Sheila S. Olsen
ENG 3355
Dr. Robert E. Cason
May 15, 2013
Avon Products Inc.
AVP
Avon Products Inc.
AVP
by
by

TABLE OF CONTENTS
Introduction4
Corporate History5
History5
Location and Management5
Competitors5
Important Stock Market Information6
Products6
Corporate Governance7
financials8
Dividends8
Book Value8
P/E information8
5 year overview9
analyst opinion9
technical opinion10
price history10
technical information11
Benefits13
Risks13
key numbers and ratios13
competitors14
market share14
analyst ratings15
institutional ownership16
financial assessment16
Recommendations16
References17

List of Illustrations
figures
Figure a: board of directors7
figure b: price history10
figure c: technical analysis 11
figure d: bollinger bands and rsi for 90-days12
figure e: technical analysis with macd for 90-days12
figure f: compare market 14
figure g: avp recommendation15
figure h: stock scouter rating15
tables
Table 1: AVP, Avon Products inc. stock market information6
table 2: dividend8
Table 3: book value8
table 4: p/e ratio and competitors8
table 5: 5-year numbers9
table 6: technical opinion overview10
table 7: AVP numbers and ratios13
table 8: competitor comparison14
table 9: institutional ownership16
table 10: risk assessment of avon16

Introduction
The Company trades in the (NYSE) New York Stock Exchange under the ticker symbol (AVP). The current CEO and Director is Sherilyn S. McCoy. She joined Avon April 23, 2012, after a distinguished 30-year career at Johnson & Johnson. Avon Products, Inc. is a manufacturer and marketer of beauty and related producs whih include cosmetics fragrance and personal hygiene products, gift and decorative items, apparel and fashion jewellery and assessories. Avon, the company for women, is a leading global beauty company with almost $11 billion in annual revenue as the world’s largest direct seller. Avon’s largest competitors in the consumer goods personal products industry are L’Oreal (LRLCY), Proctor & Gamble Co. (PG) and Revlon, Inc. (REV). Avon’s underperformance and restructure withi the company are two reasons not to invest in it. There are more reasons why an investment in Avon would be a poor decision and this report will provide you with more detailed information regarding the do not buy recommendation for Avon Products, Inc.

The primary resources used for Avon Product, Inc. research were: * Avon Company site
* Barchart
* Macroaxis
* MSN Money
* Smartmoney
* Value Line
* Wiki Invest
* Yahoo Finance

An analysis of the company history, financial and technical data, along with risks and benefits are provided in order to achieve a greater understading of Avon Products, Inc., to faciliate providing the required information to make a decision not to invest with this compay.

Corporate History
This portion of the report will inform you about Avon and its stock. It will provide a brief history of the company, its current locations and management, competitors, important investor stock information, what products it provides, and the corporate governance information.

History
The company was founded by a book seller, David H. McConnell, in 1886, when he created a bonus gift of a self-made fragrance. By 1944, Avon introduced a new component to its direct-selling model which distinguished itself from other direct sellers with a district manager plan that handled sales over $21 million by this time (“History”). Avon is sold through more than 6 million active independent sales representatives and employ over 64,000 people worldwide. Avon products are available in over 100 countries with well-known brand names as Avon Color and Skin-So-Soft.

Location and Management
Avon can be found at www.avoncompany.com and under the NYSE under the ticker symbol AVP (“Investor Relations”). Avon...

References: “Avon Shares Owned by Insiders.” Macroaxis.com. 19 Apr. 2013.
<http://www.macroaxis.com/invest/ratio/AVP--Shares_Owned_by_Insiders.>
“Avon Products Inc. AVP.” Quotes.morningstar.com. 21 Feb. 2013.
<http://quotes.morningstar.com/stock/s?t=AVP>.
“Barchart Technical Opinion.” Barchart.com.13 Mar. 2013.
“Corporate Governance Risk Indicators (GRI).” Yahoo!Finance.com. 18 Apr. 2013.
“Figure A: Board of Directors by Committee.” Avoncompany.com. 19 Apr. 2013.
<http://www.avoncompany.com/aboutavon/corporategovernance/board_charters.html.>.
“Figure B: 10-Year Price Chart.” Bigcharts.com 12 Mar. 2013.
<http://www.barchart.com/chart.php?sym=AVP&qb=1&style=technical&p=D>.
“Figure C: Resistance and Support Levels 90-Day.” Wikinvest.com 8 Mar. 2013.
<http://www.wikinvest.com/stock/Avon_Products_(AVP)>.
“Figure D: Bollinger Bands and RSI.” Yahoo!Finance.com 11 Mar. 2013.
<http://finance.yahoo.com/q/ta?s=AVP&t=1y&l=on&z=l&q=l&p=e20%2Cm50%2Cm200&a=&c=>.
“Figure E: Exponential and Simple Moving Averages.” Yahoo!Finance.com 11 Mar. 2013.
<http://finance.yahoo.com/q/ta?s=AVP&t=1y&l=on&z=l&q=l&p=e20%2Cm50%2Cm20
“Figure F: Compare Market.” Smartmoneycom. 28 Mar. 2013.
<http://www.smartmoney.com/compAnalysis/?story=compAnalysis>.
“Figure G: AVP Recommendations.” Marketwatch.com. 02 Apr. 2013.
<http://www.marketwatch.com/investing/stock/avp/analystestimates>.
“Figure H: Stock Scouter Report.” Money.msn.com 28 Mar. 2013.
<http://investing.money.msn.com/investments/stock-ratings?symbol=avp>.
“Investing, Stock.” Finance.yahoo.com. 14 Feb. 2013. <http://www.finance.yahoo.com/q/it?s=
AVP+Insider+Transactions>.
Kaplan, Jerome H. “Avon Products.” Value Line. 21 Dec. 2012. 2 Mar. 2012.
<http://www3.valueline.com/secure/vlispdf/stk1700/vlispdf/f865.pdf>.
“Key Executives-Salary.” Yahoo!Finance.com. 20 Apr. 2013.
<http://76.13.114.82/q/pr?s=AVP+Profile.>
“Table 1: AVP Values.” Finance.yahoo.com. 28 Mar. 2013.
<http://finance.yahoo.com/q/bs?s=AVP+Balance+Sheet&annual>.
“Table 2: Dividend.” Bloomberg.com 11 Mar. 2013.
<http://www.bloomberg.com/quote/AVP:US>
“Table 3: Book Values.” Forbes.com 11 Mar. 2013.
<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=AVP:>
<http://www.macroaxis.com/invest/ratio/AVP--Chart> ; Value Line 2 Mar. 2013.
<http://valueline.com/secure/vlispdf/stkl700/vlispdf/f865.pdf>.
“Table 5: 5-Year Figures.” Wikinvest.com 12 Mar. 2013.
<http://www.wikinvest.com/stock/Avon_Products_(AVP)>.
“Table 6: Barchart Technical Opinion” Barchart.com 8 Mar. 2013.
<http://www.barchart.com/opinions/stocks/AVP>.
“Table 7: AVP Values.” Finance.yahoo.com. 28 Mar. 2013.
<http://finance.yahoo.com/q/bs?s=AVP+Balance+Sheet&annual>.
“Table 8: Comparative Analysis.” Smartmoney.com. 28/ Mar. 2013.
<http://www.smartmoney.com/compAnalysis/?story=compAnalysis>.
“Table 9: Institutional Ownership.” Money.msn.com 28 Mar. 2013.
<http://investing.money.msn.com/investments/ownership?symbol=avp>.
“Table 10: Risk Assessment of Avon.” Value Line. 22 Mar. 2013.
<http://www3.valueline.com/secure/vlispdf/stk1700/vlispdf/f865.pdf>.
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