"When you buy a company with negative earnings, you might as well go to the casino and put it all on black."
Or you could learn a bit about accounting, read the SEC filings, and learn that possibly 1/4th of your company's COGS & SG&A include non-monetary expenses, and correctly account for them.
There's a big difference between GAAP and Actual accounting.
Your analysis of AVP doesn't include the turnaround abilities presented by a $605M cash infusion and seat on the BOD by a highly successful activist investment group who's goal is to cut SG&A by $500 - $700M, a $350M pay down on debt, spinoff $250M of debt to their private North American subsidiary, and technologically streamline the way the business conducts transactions.
The simplistic quantitative approach you've used does not reveal any of those strategic plans and to overlook those fundamentals would be overlooking the real value opportunity of Avon.
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How Can You Avoid Value Traps In This Market?
"When you buy a company with negative earnings, you might as well go to the casino and put it all on black." Or you could learn a bit about accounting, read the SEC filings, and learn that possibly 1/4th of your company's COGS & SG&A include non-monetary expenses, and correctly account for them. There's a big difference between GAAP and Actual accounting.
How Can You Avoid Value Traps In This Market?
Thanks for the clarification.
How Can You Avoid Value Traps In This Market?
Your analysis of AVP doesn't include the turnaround abilities presented by a $605M cash infusion and seat on the BOD by a highly successful activist investment group who's goal is to cut SG&A by $500 - $700M, a $350M pay down on debt, spinoff $250M of debt to their private North American subsidiary, and technologically streamline the way the business conducts transactions.
The simplistic quantitative approach you've used does not reveal any of those strategic plans and to overlook those fundamentals would be overlooking the real value opportunity of Avon.