March 25, 2008

Jessica Alba and Revlon

Seeking Alpha has an article about a possible turnaround at Revlon that features Jessica Alba at the center of their new marketing campaign. The article mentions that if all goes well, and if the company continues to post a profit, the stock could reach $3 "over the next few quarters."

Of course, a company such as this who is on shaky ground is not without risk. As one of the commenters point out: "Omitted is Revlon's ugly balance sheet with a more than 2 to 1 ratio of liabilities to long-term assets and long term debt of $1.44B vs. just $889M in total assets. Revlon has had only 1 profitable quarter in its last 32 and has seen its share price fall steadily since Perelman financed the purchase of Revlon with over $700M in junk bonds (back in 1985 for $58/share), from which it has never recovered. REV shares involve far more risk than is alluded to here."

No comments: