StockCall Research on Nu Skin and Avon: Survival Mode Engaged

        StockCall Research on Nu Skin and Avon: Survival Mode Engaged

  PR Newswire

  LONDON, January 22, 2013

LONDON, January 22, 2013 /PRNewswire/ --

Tough economic scenario plays havoc on all kinds of stocks, but its impact is
more pronounced for the sectors led by discretionary spending. When one has to
budget ones income and spending, it is obvious that he would put his basic
needs over his desire to spend money on facial creams and other personal care
products. In light of this, StockCall has started preliminary reporting on Nu
Skin Enterprises Inc. (NYSE: NUS) and Avon Products Inc. (NYSE: AVP). Access
these free reports now at  

Tough Times at Avon

So, naturally, companies like Avon Products Inc. and Nu Skin Enterprises are
going through tough times. Avon has been long regarded as an attractive stock
for investors looking for its steady dividend income. However, late last year,
the company announced a dividend cut, bucking the 22-year long trend of
dividend increases. Get our analyst technical insight on Avon by registering
today at

Dividend cut is not the only woe that this direct sales giant is facing. In
fact, dividend cut in itself points to bigger strategic level problems with
the company. Avon had been facing declining EPS for the past couple of years.
The first three quarters of the current fiscal year have not been kind either.
The company not only reported a decline in its EPS, but its revenue also
dropped. It now seems to be in the full life-saving mode to regain its
position in the industry. The company let go of its long time CEO Andrea Jung,
who has been partially blamed for the decline in the company's fortunes. Under
Jung's leadership, Avon tried to make foray into the traditional retail model
for its products, veering away from its unique proposition of being a direct
sales company. As the financial figures would tell you, the move failed
miserably as the new strategy placed the company directly in competition with
personal care products giants like P&G and Johnson & Johnson.

Nu Skin Does Relatively Better

Nu Skin Enterprises Inc. [ Free Research Report on NUS ] ^[ ^1 ^] , on the
other hand, is looking to report 19 percent increase in its revenue for the
fourth quarter of the year. It is scheduled to announce its fourth quarter
financial numbers on February 6 ^th . However, not all is well with Nu Skin
either. The company's business model is under considerable scrutiny after the
Herbalife hullabaloo in the market. Like Herbalife, Nu Skin also operates on
Multi Level Marketing model and thus is likely to be taken as a pyramid
scheme. Nu Skin has the usual mix of anti ageing products and nutritional
supplements in its portfolio. While the company is reporting consistent growth
in its sales and profits, it is difficult to ignore that MLM companies have
long been accused of providing misleading figures. Therefore, it is difficult
to take the financial numbers at their face value.

Both Avon and Nu Skin are looking to expand their brands in international
markets. While Avon started the process under its erstwhile CEO Andrea Jung
and yielded lukewarm results, Nu Skin is about to go ahead with its five-year
plan to consolidate its position in emerging markets like China.

Avon is also looking at dire times as it plans to slash its workforce by 1,500
in order to curtail costs. The company also made questionable decision to
forego Coty offer of $24.75 per share. Its stock is now trading in the
vicinity of $16 a pop. Apart from tough economic scene, both the companies
seem to be dealing with myriad of internal problems like questionable business
model and inefficiencies.


1.Nu Skin Enterprises Inc. Technical Analysis [ ]

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