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StockCall Research On Nu Skin And Avon: Survival Mode Engaged

Stocks in this article: AVP NUS

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 http://www.stockcall.com/todaysopinions    

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 http://www.StockCall.com/AVP012213.pdf

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

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