I am wondering why Rev stays so low. From my point of view, even in recession , cosmetics is a product that will always be sold. Revlon is more in the low cost product´s range, so that when less money is availabe to the consumer , purchases should go to the low price brands. With the dolar fall against all other currencies , Revlon exports and sales in Europe, China , Russia, etc should increase in dolar figures . Seems management is doing a good job trying to improve costs and marketing. With all those facts, I wonder why the price of the share just stays so low ? Who can give me some light on what is going on?
Mostly comes down to risk adversity. Some of the funds that owned REV decided (or have been forced) to cut loose their high risk equities in favor of cash on hand (liquidity). The large block sells are pretty clear indication of this.
But there is also likely some price manipulation going on here as is evidenced by someone painting-the-tape down at closes. Why? Certainly not so that they can sell-low...
I like the risk-reward ratio with REV at these levels.
I can't explain the low valuation of Revlon stock,in my opinion it should be selling at $1.80 - $2.00 But one problem is Revlon's evasive PR dept,it takes a great deal of effort to analise the language in the quarterly reports, conference calls,etc. Because they alternate a sentence of good results with a sentence of poor results, it's hard to maintain one's consentration on the improving aspects of the company.And most analysts will not take the required effort to study in detail these scraps of information the company releases. And so Revlon's improving position stays unknown for the most part.