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Avon gets sold, Tesla Bull goes Bearish – The Motley Fool



The aftermarket was animated Wednesday. An influential analyst who had passed Tesla (NASDAQ: TSLA) shares seems to be sucking on the company.

Not to be exterminated by an analyst, Brazilian cosmetics conglomerate Natura and Avon Products (NYSE: AVP) finally confirmed that Natura will buy its American peer in a splashy cross-border agreement.

It's not been a dull night.

<img alt = "An influential analyst who was bullish at Tesla's warehouse seems to move into the bear cave. Morgan Stanley told Adam Jonas doubt about the company's opportunities in a private conversation with a number of bankers. Institutional Customers

Business Insider and CNBC both said they had access to a recording of the conversation, and quoted Jonas directly from it.

The influential analyst, in contrast to Tesla's strong position in the fourth quarter of his fiscal 201

8 – where the company had great demand, robust cash flow and buzz about the upcoming model Y SUV – with its current situation.

"Today, the supply is greater than demand, they burn money, no one cares about model Y, the company raised the capital near low "No strategic procurement," he was quoted as saying. "Tesla is not really seen as a growth story," he added, and today [i] looks like a worried credit. g restructuring history. "

Jonas also expressed skepticism about the possibilities that Tesla would be bought by a large-scale power plant such as Amazon.com or Apple .

Tesla is a very up-and-coming -down stock, so investors are quite resilient Stocks are off, but only slightly after market trading by the media reports

Avon gets a new owner

The Avon share is almost 17% in after-sales. A joint statement confirming the buyout, which had been a hot reputation percolating throughout the day, Natura will acquire Avon in a share sale transaction worth a total of around $ 2 billion, the Avon shares being exchanged for Natura shares at a rate of 1 / 0.3

Following this, the current Natura shares will hold about 76% of the resulting company

In the statement, Natura Own Avon will result in cost savings of $ 150 million to $ 250 million a year. that some of this should "be reinvested to further improve the capacity of digital and social sales, research and development and branding initiatives and continue to grow the group's geographical footprint."

Although Avon has a strong brand as a direct seller, that's a bit of a dinosaur in an industry that has better adapted to today's market techniques, especially social media. Avon's performance may well improve when incorporated into a larger, savvy peer.

The purchase is subject to the relevant regulatory approvals. The two companies expect it to close in early 2020.

L Brands turns on Q1 revenue and EPS

L Brands (NYSE: LB) owner of high-profile retail channels Victoria Secret and Bath & Body Works reported the result in the first quarter of 2019. The bottom line in particular is to attract aftermarket dealers.

In the quarter, the company had net sales of $ 2.56 billion, slightly down from $ 2.63 billion, in the first quarter of 2018. Net worth of over $ 40 million ($ 0.14 per diluted share ) against a profit of nearly $ 48 million in the quarter. Sales with comparable stores were effectively flat on an annual basis.

On average, however, analysts expected L Brands to break even on the bottom line in the quarter, so the net profit was a very pleasant surprise. The net sales figure also exceeded expectations, which was around $ 2.56 billion. The analytes had also expected a decrease in "comps" by 1.3%.

The company lifted the bottom end of the entire 2019 guide; It now expects to earn between $ 2.30 and $ 2.60 per share (the previous range was $ 2.20 to $ 2.60). It also projects earnings per share of $ 0.15 to $ 0.20 for Q2.

L Brands is a tall flyer in the aftermarket. The company's share is up by almost 13% of this letter.


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