NEW YORK (TheStreet) -- Lately it's been ugly for shares of Avon Products (AVP). At Monday's close, the stock was at $14.69, down nearly 15% for the year to date and over 29% for the past 52 weeks. It pays a 1.64% dividend yield.
That's not pretty. But if you like "ugly ducklings turning into swans" stories, this may be your stock. Management at the direct seller of cosmetics wants to give you a reason to buy the shares. Yes, the stock is a gamble. But there are a few good reasons investors should consider it.
First, Avon has been working at reducing its costs in the face of lagging sales. Monday the company announced that it will cut another 600 jobs to save on costs. Most of those layoffs will come from its corporate organization and its North American business. Avon had 36,700 employees at the end of 2013.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV