Although Avon Products Inc. It was established 1886. and is represented in 60 countries by 6 million sales representatives, the company is in the long cycle of decline. Since the beginning of 2015 Avon seek strategic options for restructuring the business, including the sale of part or the whole company. Senior management had announced a presentation of the restructuring in May, but then postponed to the end of the year.
Continuous downtrend high volatility (weekly = 8,35%). A correction can capitalize on a new short positions. Correction is probable after yesterday's drop in price by 19.95% and the high volatility of the share.
AVP continue to decline during Q3. Representatives fell by 1%. Weighted average revenues dropped by 22% in this correction after the effect of exchange rate differences to whichit is too sensitive. Net loss for 2014 was $ 400 million in revenue at $ 8.9 billion.
Current rumors those negotiations for the sale of several investment funds, including Cerberus Capital Management and Platinum Equity LLC, but still no official information. In the absence of such data, the trend remains down.
G.Hristov / Head of Fundamental Analyzes
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