Home » Bear Case Scenario » Bear Case Scenario Avon Products $AVP, $PG, $UL

Bear Case Scenario Avon Products $AVP, $PG, $UL

Avon Products (NYSE:AVP) is about to release earnings results. Ponder this Bear Case Scenario

Q3 impairment charge of $43 million for China Operations indicates they were not able to capitalize on the worlds largest market. Tsk Tsk Tsk.

SEC and DOJ sneered at an offer of $12 million for Foreign Corrupt Practices problems. the issue has dragged out over five years and the regulators can smell very very big money. No one settles for $12 million after five years. Doesn’t even cover the photocopier bills.

Following the sale of Silpada; acquired for $650 million in 2010, the firm will have written off more than 87% of the purchase price.  Yikes not a shareholder wealth creator.

George Gutowski writes from a caveat emptor perspective.