AVP, Avon update

Just a little over a month ago we suggested that this stock might be a buy at about, give or take, $6. Here we are today at that price and have no reason to change our mind.

AVP june 6 2015 savp jul 9 2015

The stock was at $6.70 at the time but as we were looking for symmetry we chose the point where the two legs would be vector equal, that is $6.

This is a multi-level sales organisation that has been around for as long as anyone can remember. Not the best business model but on the positive side it is perhaps good to keep in mind that the stuff that they sell is counter-cyclical. Also the and MACD are holding up nicely despite the stock’s slide. The stock is down about $40 on $46, or 87%, quite an impressive correction. A buy for the serious investor!