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.