Newell Brands Inc (NWL)

This was a good investment recommendation for about 4 years. The initial negative was on Hurricane Harvey, because the company said that a lot of their chemicals were going to be in short supply. That, along with stop losses, got him out with a gain of about 35%-40%.

This was a top pick in August. Then we had the hurricanes that hammered Houston. This company owns Rubbermaid and they buy a lot of rubber. They just put out a press release saying their earnings were going to be hurt because of the increased cost of rubber, and in fact might not get it for a period of time. Because of this, the stock has been hit and is now in the low $40s. He does not believe this is a long-term event, and he would buy the heck of it at this price. It is $3 of earnings and an extremely well-managed company. They own a plethora of brands. Earnings are $3 currently, and he thinks that goes to $4 in a couple of years. Has a $60 target price. Dividend yield of 2.2%. (Analysts’ price target is $58.)

A really well-managed company. They own a plethora of brands globally. $15 billion in revenue. $100 billion of accessible market in the products where they sell them. He is looking for them to get 4%-5% of revenue growth. They just acquired Jarden, and have excess of debt at the moment. They are paying that down, and there is $1.3 billion of cost savings to come out of this acquisition. Dividend yield of 1.7%. He has a $68 target price, which is 20X earnings, for Dec/18. (Analysts’ price target is $60.00. )

Did a $15 billion acquisition of Jardin last year, and have been reshaping themselves ever since. 5 years ago, they had -5% profit growth, and now are at about +6%. Management realized about $400 million in savings. They just sold a winters sports business for about $200 million. Dividend yield of 1.73%. (Analysts’ price target is $60.)

(A Top Pick March 29/16. Up 5%.) A great company. This offers good defensive characteristics. Feels this has a lot of growth drivers in it. Merged with Jarden, which will be an opportunity for synergies.

They recently acquired a large consumer company. It tends to prop up the free cash flow. It is a way to play the increase in household formation in the US. It will have good long term growth prospects. They have a pretty strong E-commerce platform. (Analysts’ target: $58.00).

(A Top Pick Jan 26/16. Up 23.41%.) This has been very busy with acquisitions. They did the Rubbermaid deal, but just announced they were selling that off. They have done a 5-year licensing deal to do the consumer Totes division of Rubbermaid with an American company. They are moving more towards the model of a holding company to a full-on operating company.

(A Top Pick Jan 4/16. Up 5.93%.) Since the election, this has underperformed because it is consumer products, but he still likes it. Because of acquisitions it has made, this is a cheap multiple with a fair bit of growth. He would call this a US small-cap almost. Thinks this goes back to the mid-$50 so he is holding. As they show growth each quarter, he thinks it will be fine.

Consumer goods is an over owned area. A wonderful company, but most institutional global investors are probably overweight this area. Throughout 2017 this is going to be used as a source of cash to redeploy into other areas of the market.

Merged with Jarden which also made a lot of household consumer oriented goods. That merger is important, because it gives them an opportunity to look at the Jarden business, which historically had been very acquisitive. They will be able to streamline it, rationalize the product skew, and derive significant synergies of over $500 million, which should result in significant earnings growth, and hopefully dividend growth down the road. A great way to play improved household formation in the US with increasing wages and rising consumer spending. Dividend yield of 1.57%. (Analysts’ price target is $60.)

(A Top Pick Jan 26/16. Up 33.69%.) This could be a Top Pick right now, as it has pulled back about 12%. They took over Jarden, and are in the process of integrating that business and doing some divestitures. Investors have been pretty much used to this company doing acquisitions and moving into new areas.

Doing some very good growth, particularly outside of the US. Expecting about 8% earnings growth over 2016/2017. Have just divested themselves of their Venezuelan operations. Overall she likes them. $55 would be a good target price.

This is a real force. A boring company, but it has done really well. They acquired Jarden, a similar consumer product company for roughly $15 billion. This is going to control so many brands. They could grow their share price by roughly 40%. Dividend yield of 1.69%.

Good solid consumer products company. Don’t get too caught up in what happens in the short term. When you get into this type of market, you get the “baby being thrown out with the bathwater” type of scenario.

Going to be acquiring Jarden (JAH-N) and the stock is down about 20% on concerns of funding and other issues. However, the company is expected to have about $500 million in synergies and expected to close some well-known brands. One of those low volatile names that he loves. Dividend yield of 1.99%.