| Show BUSINESS I Tribune The Salt !Ake THE WALL STREET JOURNAL Ell 3 Avon Stock Looks Like a Fading Beauty insurance is one of those topics that's almost certain to raise the blood pressure of a sizable number of readers Last week's debut of Starting Out our new occasional feature issues examining personal-financfor people in their 20s was no exception In the column headlined mg from that year's high to its Ion and in November 1999 Ms Jung was named CEO She revamped the catalog changed the advertising and continued the push into emerging markets Lately however Avon's results have left something to be desired The company's unit sales growth slowed to lust 3 compared with close to 13 a year earlier signaling that its pricing power may be on the wane In December Avon disclosed that beauties Under the leadership of Chief Executive Officer Andrea Jung the New York Citybasect company has accelerated sales growth slashed costs and refreshed its image Avon is the worlds largest direct marl4eter of beauty products with more than $6 billion of yearly sales Earnings have grown on ay erage 13X annually tor five years while the stock price climbed 11X a year trouncing the performance of the Standard & Poors 500 stock index in that span What a makeover! Its a far cry from 1999 when the stock got clobbered after the company low 'red sales and earningsgrowth guidance due to a slowdown in the Lis arid Latin America The stock r US sales growth would slow to the low to mid single digits in percentage terms largely because of problems fulfilling orders for a singing Frosty the Snowman doll a holiday offering So far none of this has done much harm to the stock At $63 the shares trade at about 21 times Wall Streets earnings forecast of fourth-quarte- hould you be concerned you probably owe more on your car than it is worth? Thanks to several years of generous caruying incentives deals and longterm loans more consumers are finding AUTO themselves WATCH Across the Divide Car dealers typically sell guaranteed auto protection policies on about 37 of sales contracts they finance up sharply in the past two years according to American Financial & Automotive Services Inc Here are the in average prices of this situation for a longer GAP At car dealerships: period of time So it the vehicle is stolen or totaled in an accident they may end up having to write a check to the bank to make up the difference coverage: $500 or less At credit unions and some insur- ance companies: $200 or less Source Industry $304 a share for 2004 a premium to the S&P 500's multiple and about the same as that of the S&P consumer-productgroup Historically the stock generally changed hands at an 11 discount to the consumer group Douglas C Lane & Associates a New York money manager picked up Avon shares in 1999 but has sold most of them Over the past two years This was a turnaround play that had turned itself around" says Lane portfolio manager Sarat Sethi There were better opportunities in the market' If more investors reach the same conclusion Avon holders won't be s s adults need 'whole-lif- e policies Many of you—especially those of you with ties to the insurance business—disagree Some quite vehemently you're entitled And we always want to know what readers are thinking But on this subject as with all others if you choose to write in please keep it civil Write: torumsunday03grwsjcom and remember to include your name daytime phone number street address and the name of the paper in which you read The Wall Street Journal Sunday By the way several of last week's writers were concerned that Jonathan Clements's 'Getting Going" column was missing It's back where it belongs this week and OK sitting pretty Jacqueline Doherty is a senior editor of Barron's which is available online at wwvilarronscom local credit union or insurance carrier Or if you do find lower prices elsewhere you may also be able to negotiate GAP policy may make sense—especif you frequently trade in your ially Liter an insurance policy known GAP or guaranteed auto protection that promises to fill the gap vehicle and tend to roll over existing loan balances into new loan as But these policies typically pay out only if your vehicle is totaled not just damaged Since the damage done in most accidents can be repaired you may find the costs are already covered under your comprehensive or collision policies between the value of your car and how much you owe Once used almost exclusively in lease contracts GAP policies are now widely sold by car dealers and specialty insurers to buyers of new cars General Motors Ford Motor and DaimierChrysler all offer the policies through their dealers While this coverage can be good to have in many cases consumers should know how it works It you own a car with coveted vehicle parts or consider yourself a reckless driver for instance then a You probably won't need ur GAP if down pay- chief executive of Carbuyingtips corn of Fort Lauderdale Ha By Jane Rapid City SD employer-provide- WSIcom J stock-pickin- g Investment Dartboard Update Kim READER PICKS has massive expectations to South Brunswick NJ 08852 sunday03wsjcom Forum: forumsunday03wsjcom SINCE 'CHANGE 143003 PRICE 29G4) $2628 12989 394 2425 3023 25 3736 4348 16 1486 $1636 10 1947 1969 411 Ibis Technology (IBIS) 1187 Jack Feldman The Record (Bergen County NJ) 1150 —31 PIPCHASE INURS PRICE Oakman Christopher Halliburton (TASR) Journal Winston-Sale- (HAL) Charlotte Liszka Las Vegas Prudential Financial Review-Journ- (PRU) Karen Hymowitz Tampa Tribune ATI Technologies (AM) WSJcom Jason Zimmerman Mobile Mini (MINI) Seth Laninga Austin live up to This Tuesday's fourth-quarte- r earnings announcement could fuel the stock—or burst its bubble The reader who picked 'laser in September was Christopher Oak-mawho lives in Walkertown NC and reads the Winston-SaleJournal Alas he says he never bought any Taser stock himself Our address: caw PRICE THURS PURCHASE (74) Taser International trading at 130 times earnings so it 41 contest The readers are running away with our latest Although a couple of the stocks fell sharply last week they have still amassed a 74 average gain since last September earnings report and said it expects to earn $1 a share for 2003 But that still leaves it TO CONTACT US Our emall: your including defensive stocks was also pretty amazing that the selloff happened across all sectors Gregory Bry !ski It benefits into a financial r The Wall Street Journal Sunday 4300 Route 1 North Readers not entirely correct 'Cheaper" "investmentinvestment angle" and two typesterm and whole life" are slightly misleading in reference to life insurance one entry is already breaking records laser stock has shot up to a presplit $130 from $26 in four months and the Scottsdale Ariz stun-gumaker plans a split So what's behind all of this? Mainly a number of contracts with police and the military leading to speculation that laser could one day supply stun guns to legions of police and Homeland Security personnel Taser also had a strong 20 on a car you're going to be ahead of the depreciation curve" says Jeff Ostroff Also prices for GAP coverage vary widely depending on state regulations the vehicle type and loan amount Many dealerships sell the policies for about $500 but you can often find better deals at your Thank you for providing a simple still O has two months contest to run but "If you put down No Set Price Re: Who Doesn't Like Higher Profits?" by Erin Schulte (Jan 25): While the recent selloff on good it earnings might be rationalized seems there is no escaping that this behavior is the same exhibited by traders in past quarters when earnings were considered poor Furthe selloff was etty broad-base- concise and comprehensive guideline from which consumers can start their life insurance program There are however some choices of words and phrases which are And incorporating and Then Now One Reader's Pick Leaves Rivals Stunned ment How hope the 'Starting Our column continues because it doesn't seem that many articles or sections cater to this younger audience who have many questions because everything is so new I hope the column answers many questions in the future Shane Blondin Tacoma Wash-TacomNews Tribune the dealership with Needing GAP insurance in the first place however usually means you could be stretching to own more car than you can afford Or you may have been tempted to loan to retake on a longer-terduce your monthly payments—a strategy that has a downside since you may be paying off your loan long after your car is worthless experts Aspen Colo Denver Post The column simply spews further total ignorance about life insurance It is obvious that your 'experts" are financial planners devoted to products and selling market-base- d as such are completely biased in their views Michael Burri II Auburn Calif Sacramento Bee pointed out that many financial professionals do not believe young Ross Nell Assessing the Risk "If You're Thinking About Life Insurance reporter Kelly K Spors -- you make a large enough Get t ing Coverage Bank I plan is also not a good idea for a number of reasons where it will continue to appear regularly Jonathan wants to take a few weekends off this year so °Starting Out and other features will be appearing in his Sunday Journal spot once a month or so -- David Crook Life Filling In the Gap in Your Car's Value S Cons 'Your experts are—completely biased' Readers' Forum fell 51 1 stivio large Barron's InsightBy Jacqueline Doherty A von Products ikiPi once a FS slort4market wallflower has become one of Wall Street's reign - Sunday Febniary I 2004 CARTS American-Statesma- (42) Blue Coat Systems Greif (GEE) Valhi (VHI) Idacorp 2570 62496 3800 1400 3109 3120 126 46 24 22 21 953 11175 13 2600 1126 2550 (IDA) Tom Brown (Tm) Circuit City Stores By Andrew Blackman 93003 $ILO (SCSI) SINCE CHANGE (12904) PRICE (CC) o MRDN 7Y7 4 III t 11 9)LaJviAli t5ued6xLtyl cfet 24 iii: ' 1 THE DESERET MORNING NEWS AND THE SALT LAKE TRIBUNE information on money savings and investments The section is geared toward readers at every stage and fmancial position in life from those just starting out to retirees As an advertiser in this section you have the opportunity to submit promotional copy to explain how your business can help people bet- ter manage money matters e 7 :' 4e t '' :' ' 'i ' ''''44 044' ' k' DEA DL INES tpt 1041143 ZO 4141 ' 0 'N k 41411142 - FRIDAY I 'gm I FEB A' 4 : 00 ' o 44" 4f '''' t ''''' It'' 4eti :i ''4 I A er" 44: :47'4 ' ' - gaiWO 0 A ' ' I I L Ntmoolli ::i ) t It i moo' 4 114144'''''‘ 40 ' t I it Als ''''4i4 ' 4 S : N i 11 A k !:'r 8 ' 4? re 1 00""''' ' kitly a IA FLB ' 4 - 4 k- 5Fl1ce 1ezv4atiA)41 anct anta - p Too( 642aik4z2 ID 'It c 1 amanana VtDNESDAY -- - t ' :" kt' - Mr': i dA A ' ' Nt — c I "L f copy FEB MONDAY ' - ' 4 ig " ''''''''' ' k A 4 Ik A 1::"4 e u -- N il!:7:sik041 Ilatitoik: -- ''' 4 20 '' ' vh '''Au pA '''' 1 i '' i r7 I- L ''' 0 41 Suurre Ifriden lout bluing Market Study 2t145 i: 0 NM 4711t 0 d P'"' ers in print and online - ' I 4 ' m'" 2" c p i r' r 1 toast a quarter page to submit promotional copy your ad space today Contact your NAC account executive 1 or Julia Heavirland at (801) orjheavirlandnacorpcom RESERVE 237-238- I i ': ''''' afttl 14345t With the newspapers' online component your message will reach more than 428400 read- - 7 t t‘: 04 I 14 c ‘ ' 4tPJ DOESN'T GROW ON TREES section publishing in the Salt Lake Tribune and Deseret Morning News explores a wide range of financial issues and offers up helpful i (:g :1' 14 ci 01 ''''''N ' A - -- 4 l' ''' k ':: The Money Wise special business section of The be t" 4 '' ' ''- '': ''' MONEY V Wii Ao 11117 '' ''''''''4:'"4P LIvitN''"k t: " 4 ?- 4 I tp Ad must -' rAt " vO - ' ' IN it I Newspaper Agency Corporation KAlgatt I Zr-rib- utt lila Nal Morning News |
