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    Newell Brands: Google Search Info Shows Decline in Key Brand

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    Anonymous Ecd8rC
    This report expresses the authors' opinions about Newell Brands and contains a short position in the company's stock. The report discusses Newell Brands' reliance on accounting practices and poorly performing brands. It analyzes the company's adult coloring brand Prismacolor, citing the CEO's comments from February about expected 55% growth in 2017 but showing declining Google search interest in adult coloring books. The report argues Newell Brands will likely miss the CEO's guidance due to a slowdown in Prismacolor and other brands like Elmer's.

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    Newell Brands: Google Search Info Shows Decline in Key Brand

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    Anonymous Ecd8rC
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    This report expresses the authors' opinions about Newell Brands and contains a short position in the company's stock. The report discusses Newell Brands' reliance on accounting practices and poorly performing brands. It analyzes the company's adult coloring brand Prismacolor, citing the CEO's comments from February about expected 55% growth in 2017 but showing declining Google search interest in adult coloring books. The report argues Newell Brands will likely miss the CEO's guidance due to a slowdown in Prismacolor and other brands like Elmer's.

    Original Description:

    Follow up on report from Oct 10

    Original Title

    NWL Oct 12 note

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    This report expresses the authors' opinions about Newell Brands and contains a short position in the company's stock. The report discusses Newell Brands' reliance on accounting practices and poorly performing brands. It analyzes the company's adult coloring brand Prismacolor, citing the CEO's comments from February about expected 55% growth in 2017 but showing declining Google search interest in adult coloring books. The report argues Newell Brands will likely miss the CEO's guidance due to a slowdown in Prismacolor and other brands like Elmer's.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    162 views2 pages

    Newell Brands: Google Search Info Shows Decline in Key Brand

    Uploaded by

    Anonymous Ecd8rC
    This report expresses the authors' opinions about Newell Brands and contains a short position in the company's stock. The report discusses Newell Brands' reliance on accounting practices and poorly performing brands. It analyzes the company's adult coloring brand Prismacolor, citing the CEO's comments from February about expected 55% growth in 2017 but showing declining Google search interest in adult coloring books. The report argues Newell Brands will likely miss the CEO's guidance due to a slowdown in Prismacolor and other brands like Elmer's.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    This research report expresses soley our opinions. Use Soapbox Research opinions at your own risk.

    In no event should Soapbox Research be


    liable for any direct or indirect trading losses caused by any information contained in this report. We have a short interest in Newell Brands
    Incs stock and therefore stand to realize gains in the event that the price of the stock declines. Please refer to our full disclaimer located on
    the last page of this report.

    Newell Brands: Google Search info shows decline in key brand


    As we noted in yesterdays report, Newell Brands Inc (NWL or the Company) uses accounting tricks
    and sits on a ton of poorly performing brands. Having gotten lucky with a couple of fads, NWL is now
    poised to fail.

    Yesterday we discussed slime. Now its time to talk about adult coloring.

    Speaking at an investor conference in February, CEO Michael Polk had the


    following to say about Prismacolor, NWLs brand of adult coloring books Company: Newell Brands
    (emphasis added):
    Ticker: NWL

    Industry: Consumer
    Adult coloring. This is one we are stimulating today. Therapeutic Discretionary
    coloring. This is what I describe it to folks as. How many of you do it?
    Stock Price as of
    Be honest. How many of you -- there is one in the back. One honest
    10/11/2017: $43.17
    person in a room of 500. My wife doesn't. Although, it is a bit of an
    issue because you don't want to admit you do it, but a lot of people Market Cap:$21.157bn
    are doing this. It's a destressor. Prismacolor, the business is closing in
    on becoming a $200 million brand. $200 million brand in 2017. 55% Daily Volume: 4,026,369
    POS growth. We have the opportunity to capture these things. (3 month avg.)

    Price Target: $19.16

    However, Google Trends shows declining interest in adult coloring books.

    See next page for charts:


    If Polk was planning on 55% growth for adult coloring in 2017, hes probably
    going to be sorely disappointed. Polk could be forgiven for his optimism at
    the beginning of the year, but based on consumer interest, it appears
    guidance needs to be updated.

    A 55% growth rate to $200 million implies a $70mm of sales growth. Given
    the TOTAL Core Sales Growth in 2016 was only $95mm. A slowdown in
    Prismacolor combined with a slowdown in Elmers on the fading of the slime
    trend could seriously weaken NWLs ability to deliver any growth at all.

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